Question: 1) Suppose you are given the following Total Cost function for a firm that wants to minimize their production costs with the following technical constraints

1) Suppose you are given the following Total Cost function for

1) Suppose you are given the following Total Cost function for a firm that wants to minimize their production costs with the following technical constraints on the process of production: Min(TC) = 8x +5y subject to : A : 4x +3y 2120 B: 2x +3y 280 C:2x+ly 2 50 Non - Negativity : x, y 20 ring a) What is the optimal value of x? Join the General So b) What is the optimal value of y? C What is the firm's production cost at the optimal values of x and y? d) What is the shadow price of constraint A? Is it a binding constraint? e) What is the shadow price of constraint B? Is it a binding constraint? f) What is the shadow price of constraint C?Is it a binding constraint? g) What is the interpretation of a shadow price

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The number of new ideas that emerge

7. Develop a circular model, with positive and negative feedback loops, showing the following critical variables: