Following production function to produce flashlights: Q=√(KN)Q is the number of flashlights produced, K is the amount of capital used, and N is the amount of labour (measured in hours). It can be shown that the marginal physical product of labour is given by MPPₙ 1/2√(K/N)

Brightlight currently has 4 units of capital. The cost of capital is $10 per unit. Flashlights are sold in a
competitive market and the price of each flashlight is S3. Use the information provided to answer the
following questions:
(a) How much labour does the firm employ when the wage rate is $10 per hour? How many flashlights
does the firm produce? What is the average revenue product of labour? What are Brightlight's profits?
How much does it earn over what it would have if it shut down instead?
(b) How much labour does the firm employ when the wage rate is $15 per hour? How many flashlights
does the firm produce? What is the average revenue product of labour? What are Brightlight's profits?
How much does it earn over what it would have if it shut down instead?
(c) Sketch the firm's labour demand curve and carefully indicate the points on the demand curve
corresponding to the wages given in parts (a) and (b). How do Brightlight's profits vary along the
labour demand curve?