Problem
1. A firm operates in the short run with the production function q = 2L0.5 and faces the demand schedule p = 60 - 4q where p is price in pounds. If it can employ labour at a wage rate of £4 per hour, how much should it employ to maximize profit?
2. If a supply schedule is given by p = (2 + 0.05q)2 show (a) by multiplying out, and (b) by using the chain rule, that its slope is 2.2 when q is 400.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.