A firm has a production function given by f (x1,x2) = min{2x1 +x2,X1 + 2x2}. (a) Sketch the isoquant map for this technology (b) Verify that the elasticity of substitution o = 0, where defined. (c) Find the cost function for this technology. (d) Solve for the conditional demand function for x, and x2 as a function of factor prices (w1,w2) and output y.

A firm has a production function given by f (x1,x2) = min{2x1 +x2,X1 + 2x2}. (a) Sketch the isoquant map for this technology (b) Verify that the elasticity of substitution o = 0, where defined. (c) Find the cost function for this technology. (d) Solve for the conditional demand function for x, and x2 as a function of factor prices (w1,w2) and output y.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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