Assume y=f(1,)=(421 +2)/2 and that the output price is 16, first input price is 8 and...

 

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Assume y=f(1,₂)=(421 +2₂)¹/2 and that the output price is 16, first input price is 8 and the second input price is 3. What are the profit maximizing input demands and the what is the profit maximizing output? 1² (421 +13) Now this is substitute input case. The only input demand will be r2 as its price isucheaper. So we get input demand as z-y and profit maximizing output as y 1/2 1/3 3. Assume y=f(21,22). If the input prices are w₁ and wą, derive the cost function in terms of parameters y, toy and u₂ and show that marginal cost is increasing? Assume y=f(1,₂)=(421 +2₂)¹/2 and that the output price is 16, first input price is 8 and the second input price is 3. What are the profit maximizing input demands and the what is the profit maximizing output? 1² (421 +13) Now this is substitute input case. The only input demand will be r2 as its price isucheaper. So we get input demand as z-y and profit maximizing output as y 1/2 1/3 3. Assume y=f(21,22). If the input prices are w₁ and wą, derive the cost function in terms of parameters y, toy and u₂ and show that marginal cost is increasing?

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Sure Id be happy to help you with that For the first problem we are given the output function y fx1 ... View the full answer