Given the following information relative to a price taker’s behavior:

A. Technology of producing three outputs by means of two inputs:

aij , i = 1, 2; j = 1, 2, 3 B. Input supply: bi, i = 1, 2 C. Output market prices: cj , j = 1, 2, 3

a) Define and explain the unknown information of the problem.

b) Set up the primal LP problem.

c) Define total cost and explain its two equivalent specifications.

d) Define the marginal cost of the three outputs.

e) Define the marginal revenue of the three outputs.

f) Write down the dual problem of the price taker and explain every component of it.