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Problem 1 Mac and Jack run an ice cream business. The amount of ice cream they can make depends on their production function: q = 0.5LK2. Assume the wage is currently $10 and the rental rate is currently $60. (a) Find the MPL and MPk. What is your MRTS? (b) Assume their employment is currently fixed at 2 workers. What is their optimal bundle if they can sell their ice cream for $5 each? (c) What is their profit at this level? (d) Now, assume they can choose any combination of capital and employment that they want. If they must make 1,500 units, what is their new optimal bundle? (e) What is their profit at this bundle