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Consider a firm with production function q = 2L^1/4 k^1/4 . When r = w = 1/2, its long run cost function C = 0.5 k + 0.5 L + 1 Long-run analysis a) Write down its long-run production q as a function only of L: q = b) Its long-run profit function as a function of output price p and L is given by: ?(p,L) = Compute the cost function as a function of L, then q on your scratch work to help you find the long-run profit. c) Assuming the firm produces, its output as a function of p is: q = d) Assuming the firm produces, its labor input as a function of p is: L = e) Write down its profit as a function of p: ?(p) = f) The firms will shut down in the long run if p is below, above, or equal to a certain price level denoted pf. What is pf equal to? pf = And when do firms shut down? A. When p < pf B. When p > pf C. When p = pf g) If p = 1, the long run market supply is: A. vertical B. horizontal j) if D = 19 - p, the equilibrium number of firms N in the industry is N = __

          Consider a firm with production function q = 2L^1/4 k^1/4 . When r = w = 1/2, its long run cost function C = 0.5 k + 0.5 L + 1
Long-run analysis
a) Write down its long-run production q as a function only of L: q = __________
b) Its long-run profit function as a function of output price p and L is given by: ?(p,L) = __________
Compute the cost function as a function of L, then q on your scratch work to help you find the long-run profit.
c) Assuming the firm produces, its output as a function of p is: q = __________
d) Assuming the firm produces, its labor input as a function of p is: L = __________
e) Write down its profit as a function of p: ?(p) = __________
f) The firms will shut down in the long run if p is below, above, or equal to a certain price level denoted pf. What is pf equal to?
pf = __________
And when do firms shut down?
A. When p < pf
B. When p > pf
C. When p = pf
g) If p = 1, the long run market supply is:
A. vertical
B. horizontal
j) if D = 19 - p, the equilibrium number of firms N in the industry is N = __________

Consider a firm with production function q = 2L^1/4 k^1/4 . When r = w = 1/2, its long run cost function C = 0.5 k + 0.5 L + 1
Long-run analysis
a) Write down its long-run production q as a function only of L: q =
b) Its long-run profit function as a function of output price p and L is given by: ?(p,L) =
Compute the cost function as a function of L, then q on your scratch work to help you find the long-run profit.
c) Assuming the firm produces, its output as a function of p is: q =
d) Assuming the firm produces, its labor input as a function of p is: L =
e) Write down its profit as a function of p: ?(p) =
f) The firms will shut down in the long run if p is below, above, or equal to a certain price level denoted pf. What is pf equal to?
pf =
And when do firms shut down?
A. When p < pf
B. When p > pf
C. When p = pf
g) If p = 1, the long run market supply is:
A. vertical
B. horizontal
j) if D = 19 - p, the equilibrium number of firms N in the industry is N =

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