Microeconomic Theory Fall 2021 September 24, 2022 1. Suppose manicures are produced according to m = min{s, /} where s is manicure supplies and / is a labor hour from a manicurist. (a.) Is this production function homothetic? Plot three isoquants for this production function and explain why or why not. (b.) If manicure supplies cost p, and manicurists charge p per hour, what are the cost-minimizing quantities for s and I if the salon has booked 100 manicures for the week? (c.) What is the cost function? If P. = P = 10 how much is the salon spending this week? (d.) The salon's supplier offers them an alternative manicure material $2 that allows manicures to last twice as long, but it also costs twice as much. It still takes an hour of the manicurist's time to produce a manicure. If the salon can charge 75% more for the long-lasting manicure, is it worth it to buy the more expensive product