Problem
The short-run production function of a competitive firm is given by ff(LL) = 6LL2/3, where L is the amount of labour it uses. The cost per unit of labour is ???? = 6 and the price per unit of output is pp = 3. a) Plot a few points on a graph of this firm's production function and then sketch the graph of the production function, using blue ink. Use black ink to draw the isoprofit line that passes through the point (0,12), the isoprofit line that passes through (0,8), and the isoprofit line that passes through the point (0,4). What is the slope of each of the isoprofit lines? How many points on the isoprofit line through (0,12) are actually possible? Make a squiggly line over the part of the isoprofit line through (0,4) that consists of outputs that are actually possible.