Question 2. Firms in the lettuce industry compete in a perfectly competitive industry and produce using the following production technology, q = (K 8)iL21. The inverse demand function for lettuce is P = 40 Q. (a) Write down an equation for the firm's demand for L and K as a function of it's output q when the wage and rental rate of capital are equal to $1 (b) Write down the firm's long-run cost function C (q) = f (q). (c) What is the price that the firm's face in the long-run for lettuce? (d) How many rms are operating in the lettuce industry and how many lettuce does each firm produce