10.4 What is the proit function for this irm?

What is the supply function for assembled calculators [q(P, w)]?

What is this irm’s demand for labour function

[l(P, w)]?

Describe intuitively why these functions have the form they do.

QuickLearn Driving School trains learner drivers.

The number of candidate drivers it can train per week is given by q = 10 min(k, l )′, where k is the number of vehicles the firm hires per week, l is the number of instruct ors hired each week, and g is a parameter indicating the returns to scale in this production function.

a.

Explain why development of a proit-maximising model here requires 0 < γ < 1.

b.

c.

d.

e.