3. [16 points] Suppose a rm has a production function given by Y = low/Ev? = ioalfwl, and faoes a real wage {in} of 2.5. (a) Suppose that K = 100. Find how many units of labour will the rm hire {i.e. Compute the optimal employment level, N\"). [b] Conrm that the employment level you found in part {a} is in fact optimal, by oompleting the following table: - - - - - (o) Suppose that K = 121. Find how many units of labour will the rm hire. [d] As capital inoeases from 100 to 121, what happens to the demand for labour when capital increases? [i.e. Hint: how does the labour demand curve shift?)