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Question 4 (10 points) [10 marks] For the following question, . You get 2 marks for choosing the correct answer. . You get up to
Question 4 (10 points) [10 marks] For the following question, . You get 2 marks for choosing the correct answer. . You get up to 8 marks for the detailed solution. The cost per pair of winter gloves depends on how intensely the machines are working, on the productivity level of the workers and on the quality of the yarn. Suppose that the factors of production are summarized by a single index f. Suppose that the long-run total cost of producing y pairs of winter gloves is c (y, f), where c (),f) = 4f Ity for y > 0 and c (0, f) = 0. The firm's supply function in long-run is if p > 2f (a)S (y) = 0 otherwise Apf if p > Af (b)s (v) = 0 otherwise pf if p > f (c)s (y) = 0 otherwise 2pf if p > z (d) s (y) = lo otherwise (e) None of the above
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