Question Three a) Given two inputs X1 and X2 with Prices Wi and W2, and a production function Y=F(X1 X2) show that the marginal rate of substitution between the two inputs is equal to the ratio of their prices. b) Discuss under what circumstances the Hicksian and Walrasian demand functions are equivalent. Question Four a) Discuss why anti-trust laws or competition laws are necessary in market environments? b) : Each one of two bars charges its own price for a beer, either $2, $4, or $5. The cost of obtaining and serving the beer can be neglected. It is expected that 6000 beers per month are drunk in a bar by tourists, who choose one of the two bars randomly, and 4000 beers per month are drunk by natives who go to the bar with the lowest price, and split evenly in case both bars offer the same price. What prices would the bars select