Bicycle Helmet Testing Services requires capital

(a hammer) and labour to be used in fixed proportions

(one labourer per hammer per day of testing).

Assume also that it takes one day of steady bashing

to fully test one helmet. Show the isoquant for

a helmet-testing firm corresponding to 100 helmets

tested. Show the cost-minimizing input combination

if a day's labour costs $50, a hammer costs

$10 to rent for one day, and the firm wishes to

test 100 helmets. Depict the scale and substitution

effects if the wage decreases to $25 per day.

What does the short-run labour demand function

look like? What does the long-run labour demand

function look like?