3) Suppose a production function is y = x,"² x,", and w, is theprice of x, and w, is the priceof X2,and P is the price of output.a) Find the conditional factor demands.b) Find the cost function.c) Show that dx,/dw, = dx,/dw,.

y = x11/2x21/3 y/x1 = MP1 = (1/2)x11/2- 1x21/3 MP1 = (1/2)x1- 1/2x21/3 y/x2 = MP2 =…

3) Suppose a production function is y = x,2 x,1, and w, is the ice of x, and w, is the price of x, and P is the price of output. 1/2 1/3 a) Find the conditional factor demands. b) Find the cost function. c) Show that dx,ldw, = dx,/dw-

3) Suppose a production function is y = x,2 x,1, and w, is the ice of x, and w, is the price of x, and P is the price of output. 1/2 1/3 a) Find the conditional factor demands. b) Find the cost function. c) Show that dx,ldw, = dx,/dw-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3) Suppose a production function is y = x,"² x,", and w, is the
price of x, and w, is the price
of X2,
and P is the price of output.
a) Find the conditional factor demands.
b) Find the cost function.
c) Show that dx,/dw, = dx,/dw,.

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