Output of lawn-care services, measured in number of lawns, depends on the hours of lawn-maintenance labour, given a fixed capital stock, according to the production function:

Q = 2L

The marginal product of Labour is therefore given by 1/(L). Assume that the price of lawn services is $10 per lawn (Hint: Treat lawn services as competitive output/product market. Consider the decision rules.)

a) Solve for the labour demand function

b) Calculate the labour demand, output, and profits for wages equal to the following (i.e., fill in the remainder of the table:

Wage Labour Output Profits

$1 _____ _____ ______

$2 _____ _____ ______

$5 _____ _____ ______

$10 _____ _____ ______