Consider a firm with production function given by Q(K.E) = KY3E2/3 K denotes units of capital and E denotes units of labour. Capital is fixed at 27 units. The firm's output decision has no effect on the price of output or the wage (w). The firm is profit maximizing and can sell output for $12 per unit. Solve for the firm's labour demand function. That 1s, express as a function of w. Note that for this production function, the marginal product of labour (MPL= MP;) 1s 0QK.E) 2 . ap1s3 dE e alde SR e MP;._' Wi () If the wage rate in the labour market in this question 1s $4/hour, how many hours of employment will be demanded? Show your formulations and derivation. [