What is the solution of 1.2?

Question 1. Labour Demand and Human Capital(20) Consider a firm operating in a competitive output market. The firm produces output (Y) with input factors labour (L) and capital (K). Let w and r be the real prices of both inputs, respectively, so normalising the price of output to 1. The firm has a CES production function given by: Y = 10(0.241/3 + 0.8/1/3) 3 1.1(4) - What is the definition of the elasticity of substitution? And what is the value of the elasticity of substitution in this example? 1.2(8) Suppose the firm produces output Y = 200, and that wage w = 6 and rental rate r= 2, What Is the firm's (long-run) employment decision? - And what are the associated profits