Question: Consider a rm with production function given by f ( x 1 ; x 2 ) = ( x 1 ) 1 = 4 (

Consider a rm with production function given by
f (x1; x2)=(x1)1=4(x2)1=2 :
Assume the prices of inputs 1 and 2 are w1 and w2, respectively, and the market price of
the product is p:
(a) Find the levels of the inputs that maximize the prots of the rm (i.e., x
1 and x
2).
(b) Derive the supply function of the rm (i.e., y = f (x
1; x
2))

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