Please answer all three questions below (part a,b & c), thank you.Consider a firm with 1 input and 1 output and a production function given by f(x) = x1α with α < 1. The cost of the input is c and the price of the output is p.Please Find(a) the factor demand, x*(p, c)(b)the supply function, q*(p, c)(c) the profit function, π*(p, c).

Production function : f(x) = x1a Input price = c Output price = p A producer demands that level of…

Answered: Please answer all three questions below…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer all three questions below (part a,b & c), thank you.

Consider a firm with 1 input and 1 output and a production function given by f(x) = x₁^α with α < 1. The cost of the input is c and the price of the output is p.

Please Find

(a) the factor demand, x*(p, c)

(b)the supply function, q*(p, c)

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