Microeconomic Theory 11th Edition by Walter Nicholson,Christopher Snyder

تمرين 3

The production function for a firm in the business of calculator assembly is given by

where q denotes finished calculator output and l denotes hours of labor input. The firm is a price-taker both for calculators (which sell for P) and for workers (which can be hired at a wage rate of w per hour).
a. What is the total cost function for this firm?
b. What is the profit function for this firm?
c. What is the supply function for assembled calculators [q(P, w)]?
d. What is this firm's demand for labor function [l(P, w)]?
e. Describe intuitively why these functions have the form they do.