Problem 4 Long Run Jimmy produces milk using milk-making machines (read: cows) (K) and labor (milk- men) (L) He has access to the technology given by 'y = f(K, L) = K1/3L1/3 The price of a gallon of milk is p = $1; the price of one machine (cow) is wk 2 $2 and the (milkmen) wage rate is w; : $1. a) Does this function exhibit increasing, constant or decreasing returns to scale? b) Write down the prot function (a function that depends on K and L) c) Find the optimal input levels, the output level and the maximal prot. (Hint: follow the steps shown in class - slides L16)