Question: I'm not sure how to solve this problem. I would appreciate if you could help me with this problem. 5. Consider a rm that produces

I'm not sure how to solve this problem. I would appreciate if you could help me with this problem.

I'm not sure how to solve this problem. I would appreciate if

5. Consider a rm that produces two types of outputs, yl and y2, with two inputs, 21 and 22. Let aij denote the amount of input 1' required to produce 1 unit of output j. Then the 2by2 matrix A : [oz-j] describes what is known as the input-requirements matrix. To be specic, assume that the rm's input requirement matrix is given by 3 5 A _ [2 8] . (a) If the rm plans to produce [:1 = [3]: i.e., 6 units of output 1 and 9 units of output 2, then how much of 21 and 752 will be required? (b) Let the prices of inputs be $7 per unit and $10 per unit, respectively, so that _ 7 W 10 is an input price vector. What is the interpretation of WTAy

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