1/3 „1/3 Farmer Joe's production function is f(x1,x2) = x;^x°, where x¡ is the number of pounds of lemons he uses and x2 is the number of hours he spends 1/21/²,3/2, where y is the %3D squeezing them. His cost function is c(w1. w2, y) number of units of lemonade produced. = 2wwy3/2, where y is the (a) If lemons cost $1 per poud, the wage rate is $1 per hour, and the price of lemonade is p, what is his marginal cost function? 2.

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Chapter1: Making Economics Decisions
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1/3 1/3
Farmer Joe's production function is f(x1, x2) =
", where xị is
the number of pounds of lemons he uses and x2 is the number of hours he spends
1/21/2
2wi"wy3/2, where y is the
squeezing them. His cost function is c(w1. w2, y) =
number of units of lemonade produced.
(a)
If lemons cost $1 per pound, the wage rate is $1 per hour, and the
price of lemonade is p, what is his marginal cost function?
Transcribed Image Text:1/3 1/3 Farmer Joe's production function is f(x1, x2) = ", where xị is the number of pounds of lemons he uses and x2 is the number of hours he spends 1/21/2 2wi"wy3/2, where y is the squeezing them. His cost function is c(w1. w2, y) = number of units of lemonade produced. (a) If lemons cost $1 per pound, the wage rate is $1 per hour, and the price of lemonade is p, what is his marginal cost function?
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