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3. (24 points) Assume that in the long run the firm chooses inputs 1 and 2 in order to min mix + wx s.t. y

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3. (24 points) Assume that in the long run the firm chooses inputs 1 and 2 in order to min mix + wx s.t. y = f(x1, x2). (1) Graphically illustrate that the total cost curve shifts upward when the price of input 1 increases. (2) Graphically illustrate that the total cost curve shifts downward when the firm experiences technological progress. (3) Graphically illustrate that the firm moves along the long-run cost curve when expanding its scale

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