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

= 4L

The marginal product of labour is therefore given by 2/.

Assume that the price of lawn service is $15 per lawn.

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

c) How do profits vary along the demand curve?