13.7 The production function for a firm in the business of calculator assembly is given by q
2L, where q is finished calculator output and L represents hours of labor input. The firm is a price taker for both calculators (which sell for P) and workers (which can be hired at a wage rate of w per hour).

a. What is the supply function for assembled calculators [q  f(P, w)]?

b. Explain both algebraically and graphically why this supply function is homogeneous of degree zero in P and w and why profits are homogeneous of degree one in these variables.

c. Show explicitly how changes in w shift the supply curve for this firm.