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 x; xxx :
Assume the prices of inputs and are w and w respectively, and the market price of
the product is p:
a Find the levels of the inputs that maximize the prots of the rm ie x
and x
b Derive the supply function of the rm ie y f x
; x
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