QZ (a) (5 points) A firm operates in a perfectly competitive output market and a perfectly competitive input market. The production function for the firm is: f(N, K) = N% K% The price of labour is $10, and price capital $20. If the firm needed to produce 100 units, how much capital and how much labour should they use in the longrun? Q2 (b) (5 points) If the wage rate increased to $20, and the first now changes their production to 50 units of output. How much labour should they use? How much capital?Q2 (c) (5 points) What are the scale and substitution effects for this firm? Calculate them, and show them on a graph