Describe any three managerial decisions that can be applied by the manager from the estimated demand function

Consider a purely competitive firm that has two variable inputs L (labor hour) and K (machine) for production. The price of product is $p. The production function is Q (K; L) = 4L^1/4 K^1/4 . Assume that the hourly wage of workers is fixed at $w and the price per machine is $r Write out the optimal inputs quantities, L and K, as a function of parameters, p, w, and r

A profit-maximizing, perfectly competitive firm produces a single output from two inputs. The logarithm of the maximized profit function is given by: Int (p,r,w) = a, + a, In w+ a, ln r + a, In p where w, r, and p denote the price of labor, the price of capital, and the price of the firm's output, respectively. a) Derive the supply function and the demand functions for capital and labor. b) What restrictions can you place on the parameters a1, a2, and a3?

Please help; I'm confused on this one. I got d as my answer, but I feel the correct answer should be (C), an increase in supply since the marginal cost is being increased due to work safety regulations.