Long-Run Labor Demand 5. Cricket produces dog food using labor and ovens, but he's not particularly good at allocating his resources. Suppose the price of labor (E) is w = $10 and the price of ovens (O) is r = $30. (a) Suppose that initially Cricket is employing both labor and ovens, and at his current bundle [3 pts] MPE=1/2. of inputs, the marginal rate of technical substitution is given by MRTSE,O = MPO Explain how he could reallocate his resources to increase his profits. (b) Now, suppose that Cricket is still employing both labor and ovens, but at this new bundle [3 pts] of inputs, the marginal rate of technical substitution if given by MRTSE,O= Explain how, once again, he could reallocate his resources on increase his profits. MPE = 1/10. MPO