s sister Jan opens a business making hand-knit scarves with two inputs: yarn (y) and tassles Show more Cindys sister Jan opens a business making hand-knit scarves with two inputs: yarn (y) and tassles (t). Her production function is f(y t) = 12y 1/2 + 4t 1/2 . The price of yarn is $1 and the price of tassles is $2. Since Jan is a competitive firm she takes the price of each scarf as given by market conditions. The current price is $4 per scarf. What is the profit-maximizing number of scarves for Jan to produce? How much profit does she make? Suppose that the price of scarves falls to $3. Calculate the new output quantity for Jan and sketch her supply curve using the results from this question and the previous question. Your sketch does not need to be graphically accurate but should include labels for each axis and any relevant points of interest. Show less

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