Question: Consider a company with the production function y = x 1/2 where w > 0 is factor costs of input and, x, and y is

Consider a company with the production function y = x^1/2 where w > 0 is factor costs of input and, x, and y is output. The company operates in a competitive market and takes the price p, for granted.

Set up the company problem and solve it. Comment on how the result depends

of p and w.

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