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Acme Inc, using the input of labor (y1 Acme IIIC, using the input of labor (yl O) to produce widgets 0) and smidgets (Y3 0).
Acme Inc, using the input of labor (y1
Acme IIIC, using the input of labor (yl O) to produce widgets 0) and smidgets (Y3 0). Production is given by G(yl) = (yl), where 4-3!/3 G. You can think of G as the total amount of parts produced and those can be assembled into widgets and smidgets. (a) Write the Lagrangian for the profit-maximization problem. (b) Solve for the profit-maximizing supply. Think carefully; there are 3 cases to consider and you can ignore the zero-measure "edge" case
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