Hi A company's production function is y = x1 . x2 " and 0 0 and factor input 2 costs w2 > 0. The company wants to minimize its production costs when the production is y > 0 entities of output 1. What is the input demand function for x, and x2 as a function of w1, w2 and y. In other words, how much of input x1 and x2 would the company demand when it faces input prices w, and w2 and wishes to produce y entities. Call These for x; (w1, w2, y) and x2 (w1, W2, y). The first part of the assignment is to find x, and x2 which I already did: (W2 . a)1-a xi= y' (w1 . (1 - a)) 1-a (W1 . (1 - a)) X2 = y . (W2 . a)a The next part is where I'm stuck a W2 1. What is the elasticity of ~ in relation to -. In other words, what is w1 x 1 21 me 2. What does this elasticity imply about the total cost being spend on input 1