Question: 1. Assume an interior solution (is, 05* E (0, 1)) and write down the first order conditions for this problem with respect to a. 2.

1. Assume an interior solution (is, 05* E (0, 1)) and write down the first order conditions for this problem with respect to a. 2. 'Write down the second order condition. Is it satisfied? 3. Use the first order conditions to derive the comparative statics of 05* with respect to 10. Use the implicit function theorem to write down 33*fc'9w. (this is a long expression sorry! )

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