it is intermediate microeconomics

2 Production with fixed costs A firm produces a single output from two inputs. Suppose the price of output is 1 and input prices are w1, w2 > 0. The firm's production function is 2 1 ' 22 2 1, f ( z1, Z2 ) = 0. 22 0. Input 2 captures fixed factors of production, such as buildings and equipment; input 1 captures the materials used to make the output good using the fixed factors. 1. Calculate the firm's cost function. (Be careful to include the case q = 0!)2. Suppose oz > 1. Does the rm have a prot-maximizing output level? Why or why not? 3. Suppose a = 1. What is the rm's prot-maximizing output level when 101 2 1? What about when wl