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We get the following FOC's P-E -8/9 k =w p-EV 1 1/9 K-2/3 = r which can be combined to get K = 3E. Plugging
We get the following FOC's P-E -8/9 k =w p-EV 1 1/9 K-2/3 = r which can be combined to get K = 3"E. Plugging this back into either FOC, we can derive po 3w 1/3 E-5/9 = w. From this we have that: 3w \\ 1/3\\9/5 E = W This rule will be the same in (d). Plugging in to E first and then K, we get E = 0.267 and K = 3E = 0.801. These choices lead to a profit of 26.75 dollars
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