Exercise 3: The Producer's Cost Minimization Problem Consider a rm that uses two inputs to produce one output. The rm's production technology can be described by the production function y = \"21322) = 2Z1 +3\\/Z2 1. What is the rm's marginal rate of technical substitution, M RTS (21,22)? 2. Find all input bundles (2:1, 232) E R1 with M RTS (2:1, 22) = i. Find all input bundles (2:1, 232) E R1 with M RTS (2:1, 22) = 3. 3. Suppose the input prices are ml : 1 per unit of input 1 and 11:2 2 3 per unit of input 2. Find the rm's conditional factor demands (Le. cost-minimizing input choices) 211" (y; 1, 3) and z; (y; 1, 3) as functions of the target output level 1; > D