Question: Assume that the production function is y = x 0.5 . The price of the input is $2, and the priceof the output is $5.

Assume that the production function is y = x^0.5. The price of the input is $2, and the priceof the output is $5. What is the profit-maximizing level of use of x? What is the own-priceelasticity of demand for input x? What is the output-price elasticity of demand for input x?

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