Question: 1. Given the production function Q(L) = bL. b > 0. defined on [0. +00)- derive the cost function, C(Q), and the profit function. 71(Q)

1. Given the production function Q(L) = bL. b > 0. defined on [0. +00)- derive the cost function, C(Q), and the profit function. 71(Q) for a perfectly competitive firm. Let fixed costs be (‘0, and let w be the unit price of L. Prove that the production function is continuous (according to definition 4.4) and then use theorem 4.1 to show that the cost function and the profit function are continuous.

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