Question: A firm produces a single output y using two inputs x 1 and x 2 . The associated input prices are w 1 = 2

A firm produces a single output y using two inputs x₁ and x₂. The associated input prices are w₁ = 2 and w₂ = 8. For the three production functions below, derive the total cost function (total cost c(y) as function of output y) when both inputs are fully flexible:

a) Production function is y = min {x₁, 4*x₂}

b) Production function is y = x₁ + 4*x₂

c) Production function is y = ln x₁ + ln x₂

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