4. Suppose the production function of the firm is () = 8 The price of the product is fixed no matter how many units are produced/sold.

a. If the cost of the input (L) is $20 (w = 20) and the firm decides to hire 16 units of labor, what is the price of the output the firm is producing and what are the firm's profits?

b. Suppose there was a technological improvement so that more output can be produced from the same amount of inputs. How would that change the production function above? Give one example of a production function and briefly explain (there is more than one correct answer)