Q4. A firm's production function is given by q = 2z1 + 3z2. Given the input prices, w1 for z1 and wz for z2. a. Find the input demands z1 and z2 minimizing the cost of producing the level of output q. b. Find the cost function for producing the level q.

Q4. A firm's production function is given by q = 2z1 + 3z2. Given the input prices, w1 for z1 and wz for z2. a. Find the input demands z1 and z2 minimizing the cost of producing the level of output q. b. Find the cost function for producing the level q.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Q4. A firm's production function is given by q = 2z1 + 3z2. Given the
input prices, wi for 21 and w2 for z2.
a. Find the input demands z1 and z2 minimizing the cost of producing
the level of output q.
b. Find the cost function for producing the level q.
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