A firm's production function is f(x ,x ) = x1/2x1/2. The prices of inputs 1 and 2 are

both $1.

(1) If x2 is fixed at 2 in the short run, derive the firm's short-run cost function cs(y) and the firm's short-run supply function Qs(p). Compute short-run producer surplus for p=10.

(2) Derive the firm's long-run cost function c(y) and the firm's long-run supply function Q(p). Compute long-run producer surplus for p = 10.