13.10 In Example 13.3, we computed the general short-run total cost curve for Hamburger Heaven as 400

a. Assuming this establishment takes the price of hamburgers as given (P), calculate its profit function (see the extensions to Chapter 13), IT* (P, V, W).

b. Show that the supply function calculated in Example 13.3 can be calculated as dTT*/dP =

q (for w = v — 4).

c. Show that the firm's demand for workers, L, is given by —diT*/dw.

d. Show that the producer surplus calculated in Example 13.5 can be computed as rP*

dir*/dPdp Jo for w = v = 4.

e. Show how the approach used in part

(d) can be used to evaluate the increase in pro ducer surplus (and in short-run profits) if Prises from $l to $1.50.