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4. Suppose a consumers utility.r function for goods 1 and 2 is n{y1.y2} = minlzyl. 121:2}. Suppose a rm producing good 1 has the production
4. Suppose a consumer"s utility.r function for goods 1 and 2 is n{y1.y2} = minlzyl. 121:2}. Suppose a rm producing good 1 has the production function ILL-\"12} = $2+sl +1231. Suppose the price of [actor 2 is w: = 1. and let trig denote price of input 1. [Assume input 1 is labour and input '2. is capital}. [at] Derive the consumes's I'L-Inrshallisn demand for goods 1 and '2. [b] Derive the consLuner's Hicksian demand [or goods 1 and 2. {c} Suppose the rm is required to produce Hi units of output. For 1which values of m; would a costminimizing rm use i. onl},r labour? ii. onlyr capital? iii. both capital and labour
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