Answer question 2 and 3 please

s e e Question 2 (7 points): The firm's productidy function depends on two variables: Capital (K, measured in thousands of dollars) and labor (L, measured in number of people) and the total production (Q) is given by equation: Q = VK - In(K? + 40) + L75 4 (KL)%25. Currently, the firm has K=100 and L=81, so, Q = v100 - In(1002 + 40) + 81975 4 (100 * 81)%25 = 128.63. If the firm wants to hire AL people (where AL is small), by how much can it decrease the amount of capital so that the total production will not change? You answer should be in a form AK = A = AL, where A is the constant that you need to find, and AK is the change in capital (i.e the decrease in capital will be AK). Note: this question is computational-heavy. Question 3 (5 points) A monopolist has cost function C(q) = e%v7 and the demand function is given by p(q) = where q is the quantity the monopolist choses to produce and p(q) is the price it can charge for its product. a) (2.5 points)At which production level the average total costs will be minimized? b) (2.5 points) How much the monopolist should produce in order to maximize profit ;. e T | e %