Question [1]: Let us look at a simple example of a firm with a shut-down decision. Suppose there is one output y produced from 1 input . Let output price be p and input price be w. Technology is given by the function y = f (1) = if l 1 . Derive the firm's labour demand, supply, and profit function. . Draw representations of these functions. . Derive the firm's conditional labour demand function and the cost function. . Now state the profit maximization problem using the Cost function from the previous step, and solve. . Do both approaches provide the same answer for output and profit