Question 1 Consider a production function of the form: y = (x1 +23)=. Draw the isoquants and explain whether the technology is convex in the following cases: (a) When $ = = [3.5 marks] (b) When s = 2. [3.5 marks] Question 2 Suppose a firm's profit function is given by: n (p, W1, (2) = 1 p3 9 w1 w/2 Compute the supply and input demand functions. Show the supply function slopes upwards and the input demands slope downwards. Verify symmetry in cross-price effects. [8 marks] Question 3 Suppose a firm has the following production function: Y = (A+C)i Li where A represents macbooks, C represents chromebooks and L denotes labor. The prices of the three inputs are PA, pc and w. Solve for the conditional factor demands of each input and for the cost function. [12 marks] Question 4 Consider the following production function that uses labor (() and capital (k), f ( e, k) = 202ki Denote the price of labor by w and the price of capital by r. Suppose in the short-run the level of capital the firm operates is fixed at k. In the long-run the firm can adjust both labor and capital