Question: Given the following production function and unconditional factor demand functions: y = 2x 1 0.5 x 2 0.4 x 1 * = 0.41P 10 r

Given the following production function and unconditional factor demand functions:

y = 2x10.5 x20.4

x1*= 0.41P10r1-6r2-4

x2*=0.33P10r1-5r2-5

y* = 0.82 P9r1-5r2-4

a) Use the factor demand functions above to derive the indirect profit function.

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