1.9.

a. Suppose that a firm’s production function is q = 9x1/2 in the short run, where there are fixed costs of $1000, and x is the variable input whose cost is $4000 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q).

b. Write down the equation for the supply curve.

c. If price is $1000, how many units will the firm produce? What is the level of profit? Illustrate your answer on a cost-curve graph.