2. (2 points) An apple orchard produces apples using laborers and fruit pickers (think of a long pole with a basket on top to catch the apple). A laborer needs one fruit picker and can pick 50 apples per day. Formally, the orchard's apple picking technology can be expressed as Q = 50 min{N,K} where Q is the quantity of apples, N is the number of laborers, and K is the number of fruit pickers. Assume that each apple sells for Sl on the market. a) (l point) Suppose it costs the apple orchard $5 per day to rent a fruit picker and S30 per day to hire a laborer. What is the cost-minimizing input combination (N ,K) in order to pick 100 apples? Graphically illustrate how (N ,K') is derived by drawing the isocost line and the isoquant. Conditional on picking 100 apples and using (N ,K') quantities of input, how much are the apple orchard's profits and total costs? b) (l point) Now, suppose that the cost to hire a laborer drops to $20 per day. Conditional on maintaining the same total cost level as in part (b), what is the apple orchard's profit-maximizing quantity of apples? Graphically illustrate how the new optimum is found by drawing the isocost line and the isoquant.