Question: A competitive firm uses two inputs, capital () and labour (), to produce one output, (). The price of capital, k , is $1 per

A competitive firm uses two inputs, capital () and labour (), to produce one output, (). The price of capital, _k, is $1 per unit and the price of labor, _l, is $1 per unit. The firm operates in competitive markets for outputs and inputs, so takes the prices as given. The production function is (,)=3^0.25 ^0.25.

Using your supply function, find the profit maximising quantity if the price of output =4. What price would be needed for the firm to supply 18 units of output?

How is the supply curve calculated?

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