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Calculate the derivative of output with respect to a and its sign.

(c) Suppose that there are n identical chip producers, let D(p) be the
demand function, and let p(a) be the competitive equilibrium price. Calculate
(dplda) and its sign.
5.10. Suppose that a firm behaves competitively in its output market and
its factor market. Suppose the price of each input increases, and let dwi
be the increase in factor price i. Under what conditions will the profit
maximizing output decrease?
5.11. A firm uses 4 inputs to produce 1 output. The production function
is ~ ( x I , x ~ , x ~=, mxin~{)x 1,x2) +min{x3,x4).
(a) What is the vector of conditional factor demands to produce 1 unit
of output when the factor price vector is w = (1,2,3,4)?

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