Question: Need help understanding the following, specifically ( b ) and ( c ) . Consider the following cost function: c ( w 1 , w
Need help understanding the following, specifically b and c
Consider the following cost function:
a Find the marginal cost function, the average cost function, the supply function, and the
demand function for input
b Sketch the supply curve and the demand curve for input
c What is the effect of an increase in the price of input on the supply curve and the
demand curve for input Illustrate your answers.
Solution: excluding graphs
Supply:
To get demand for input use Shephard's lemma:
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