Using the following Cobb-Douglas production function y=f(x1 ,x2 )=x1^.2 * x2^.8 with unit costs of inputs w1
Fantastic news! We've Found the answer you've been seeking!
Question:
Using the following Cobb-Douglas production function y=f(x1 ,x2 )=x1^.2 * x2^.8 with unit costs of inputs w1 for x1 and w2 for x2
a. Please graph the isoquant and isocost of this Cobb-Douglas production function?
b. What is the condition for cost minimization that must hold?
c. What is the cost function c(w1 ,w2 ,y)?
d. Show that the cost function exhibits constant returns to scale.
Related Book For
Probability and Stochastic Processes A Friendly Introduction for Electrical and Computer Engineers
ISBN: 978-1118324561
3rd edition
Authors: Roy D. Yates, David J. Goodman
Posted Date: