The cost function c(w, w2, y) of a firm gives the cost of producing y units...

   

Transcribed Image Text:

The cost function c(w₁, w2, y) of a firm gives the cost of producing y units of output when the wage of factor 1 is w₁ and the wage of factor 2 is w2. Find the cost functions for the following firms: 1. A firm with production function f(x₁, x2) = min{2x1,3x2} 2. A firm with production function f(x₁, x2) = 2x1 + 3x2. 3. A firm with production function f(x1, x2) = max({2x1,3x2} The cost function c(w₁, w2, y) of a firm gives the cost of producing y units of output when the wage of factor 1 is w₁ and the wage of factor 2 is w2. Find the cost functions for the following firms: 1. A firm with production function f(x₁, x2) = min{2x1,3x2} 2. A firm with production function f(x₁, x2) = 2x1 + 3x2. 3. A firm with production function f(x1, x2) = max({2x1,3x2}

Answer rating: 100% (QA)

Here are more detailed calculations 1 fx1 x2 min2x1 3x2 If we incr... View the full answer