Homework #5 . Slick Willies produces Soul Glp hair product by employing labor and capital according to the production function: g = 34LK . a) What are the returns to scale for Slick Willies? b) If r = $40/unit of capital and w = $10/worker, what is the optimal input bundle for q = 100? c) What is Slick Willies total cost function with respect to (1, w and 'r? . A rm that competes in a perfectly competitive industry has a short run cost function: 0(a) = 309T 802 + q3 (1) a) For this rm, what are: F0, VC, MC, ATC', AVC, and AFC? b) If this industry is in equilibrium (recall the conditions for equilibrium), what will be the prot maximizing output for our rm and what will be prots? . A perfectly competitive rm has short run total cost function of the form: C(q) = 1000 + 50g q2 + 0.01;,3 (2) a) Dene this rm's supply curve (Hint: it will be dened by a price). . A rm has the following production function: q = LiKg (3) a) What is the rm's total cost function? b) What is the rm's short run total cost function when capital is xed at K = 16? c) What are the answers to a) and b) when w = $10 and r = $15