Question: A competitive firm uses two inputs x 1 and x 2 and has a production function y = 22x 1 0.25 x 2 0.25 .

A competitive firm uses two inputs x₁ and x₂ and has a production function y = 22x₁^0.25x₂^0.25. The firm can buy as much of either factor as it likes at a factor price of $1 for each input. What is the minimum cost of producing y units of output for this firm? Use a bordered Hessian matrix to justify your answer.

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