Suppose firms use skilled labor (H) and unskilled labor (L) to produce according to the following production function
Q = 3 min{H, L}
where Q is the output quantity. The supply curve of skilled labor is given by H = Wh− 0.5. And unskilled labor is supplied elastically at price Wl = 1. Output market is competitive and output price is 1. Input markets are competitive as well. Which of the following input combinations maximizes profit?
(a) H=0,L=1 (b) H=0.5,L=0.5
(c) H=0.75,L=0.75 (d) H=2.5,L=2.5
(e) H=2.5,L=1 (f) H = 1, L = 1 (g) H=3,L=0 (h) H=4,L=4