Suppose that a firm’s production technology is described by the production function f(x1, x2) = (x1)^2x2, where x1 denotes the quantity of input 1 and x2 denotes the quantity of input 2. Let the price of input 1 be $1 and the price of input 2 be $4. a. Derive the conditional input demand functions for both inputs. b. Derive the firm’s cost function

Suppose that a firm’s production technology is described by the production function f(x1, x2) = (x1)^2x2, where x1 denotes the quantity of input 1 and x2 denotes the quantity of input 2. Let the price of input 1 be $1 and the price of input 2 be $4. a. Derive the conditional input demand functions for both inputs. b. Derive the firm’s cost function

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.6P

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