Question: Given the production function below, generate the derived demand function as a function of the input price (Px) to the output price (Py) -- you
Given the production function below, generate the derived demand function as a function of the input price (Px) to the output price (Py) -- you should use "r" as the parameter of the ratio of the prices. Do not leave any fractions or radicals. Reasonably simplify the function. You must show your work to get credit. If the quadratic formula is used, you must explain how you are choosing between the "+" or the "-".
y= (75) x (X^2) - (0.05) x (X^3)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
