Let  f(x1, x2) = (min{x1 − x1})α1(min{x2 − x2})α2 where x1, x2 > 0 are interpreted as minimum requirements of inputs needed for thefirm to operate, and α1, α2 > 0, with α1 + α2 = β < 1. Draw some isoquants, and obtain the cost function and the conditional demands for inputs. min {x-xbar} means {0, x-bar}

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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Let  f(x1, x2) = (min{x1 − x1})α1(min{x2 − x2})α2
where x1, x2 > 0 are interpreted as minimum requirements of inputs needed for thefirm to operate, and α1, α2 > 0, with α1 + α2 = β < 1. Draw some isoquants, and obtain the cost function and the conditional demands for inputs.

min {x-xbar}

means {0, x-bar}

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