Say that you are operating a firm that produces widgets using 2 and 2 according to...
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Say that you are operating a firm that produces widgets using 2₁ and 2 according to the following production function f(₁,₂)=3₁ +37₂ The price of ₁ is w₁ = 1, and the price of ₂ is wy = 3. (a) State the firm's cost minimization problem if the firm wants to produce 9 units of output. (b) Solve the cost minimization problem above to find the cost minimizing levels of , and r2, denoted zi and r. (e) Based on your answer to Part b. what is the minimum cost at which your firm can produce 9 units of output. Say that you are operating a firm that produces widgets using 2₁ and 2 according to the following production function f(₁,₂)=3₁ +37₂ The price of ₁ is w₁ = 1, and the price of ₂ is wy = 3. (a) State the firm's cost minimization problem if the firm wants to produce 9 units of output. (b) Solve the cost minimization problem above to find the cost minimizing levels of , and r2, denoted zi and r. (e) Based on your answer to Part b. what is the minimum cost at which your firm can produce 9 units of output.
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a The firms cost minimization problem is to minimize the cost of producing 9 units of output given t... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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