2. Consider the following production function: y = X122. = (a) Draw an isoquant. Directly calculate the TRS at any input level, (x1, x2). Verify that this is the same as MP1 MP2 (b) Solve the long-run cost minimization problem to get c(y). (c) What is the marginal cost function? Based on the cost and marginal cost func- tions, what can you say about this production function's returns to scale? (d) Now, consider the short run, and assume x2 is fixed at some level F. Derive the cost function and marginal cost function. (e) In what way is this marginal cost function fundamentally different from typically assumed short-run marginal cost functions? (f) Now let us consider a DRS production function: f (x) = x+x. Again, suppose . in the short run X2 is fixed at some level F. Find the firm's short-run supply function and draw it. > 1 1 =