Find the conditional factor demand for factor $x_2$ if the firm wants to produce $y\ =\ 25.1$ units of output with the production function $f(x_1,x_2)\ =\min{(0.5x_1,0.3x_2)}$. Price of output $p\ =\ 39.1$ and prices of inputs are $w_1\ =\ 5.3$ and $w_2\ =\ 8.7$. Hint: 1. Think what is the cheapest way to produce $y$ units of output given this specific produciton function. 2. Derive demand for $x_2$ as a function of $y$, $w_1$ and $w_2$ only Type your answer with at least 4 decimal digits! Answer:

Find the conditional factor demand for factor $x_2$ if the firm wants to produce $y\ =\ 25.1$ units of output with the production function $f(x_1,x_2)\ =\min{(0.5x_1,0.3x_2)}$. Price of output $p\ =\ 39.1$ and prices of inputs are $w_1\ =\ 5.3$ and $w_2\ =\ 8.7$. Hint: 1. Think what is the cheapest way to produce $y$ units of output given this specific produciton function. 2. Derive demand for $x_2$ as a function of $y$, $w_1$ and $w_2$ only Type your answer with at least 4 decimal digits! Answer:

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: The Supply Of And Demand For Productive Resources

Section: Chapter Questions

Problem 1CQ

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