A firm has the following two conditional factor demands: Z₁ = q + 3w₁ -1/2w2ª a Z₂ = q + bw₁¹/2w₂c What are the values of a, b, and c? Explain carefully. If you cannot determine an exact value, indicate the restrictions on the values and why.

A firm has the following two conditional factor demands: Z₁ = q + 3w₁ -1/2w2ª a Z₂ = q + bw₁¹/2w₂c What are the values of a, b, and c? Explain carefully. If you cannot determine an exact value, indicate the restrictions on the values and why.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm has the following two conditional factor demands:
71 = q + 3w11/2w2a
Z2 = q + bw11/2W2C
What are the values of a, b, and c? Explain carefully. If you cannot determine an
exact value, indicate the restrictions on the values and why.

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