Question: Given the production function in equation (1), explain the CMP for a given plant. Clearly describe the goal, the choice variables, the exogenous variables, and

Given the production function in equation (1), explain the CMP for

Given the production function in equation (1), explain the CMP for a given plant. Clearly describe the goal, the choice variables, the exogenous variables, and the constraint. Describe the notable economic relationships that solve the CMP.

Rent- Rent.p C( ww/,P.S=1 C(W.W, p. 9) = 1 Vw.pk V(wy.p) Cw.wp.)1 C(w,.,.P.S=1 rent in B rent in B p' rent in A rent in A w wage wage wage in A N w wage in B in B in A HION EDUCATION LOW EDUCATION FIGURE 1. EQUILIBRIUM WAGES AND RENT IN Two CITIES Notes: Point 1 is the equilibrium in city A. Point 2 is the equilibrium in city B without externality. Point 3 is the equilibrium in city B with externality. The dashed lines in both panels are the isocost curves in city B without externality, w, and w, are the nominal wages of educated and uneducated workers, respectively

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