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Consider a company with the production function y = x 1/2 where w > 0 is factor costs of input and, x, and y is
Consider a company with the production function y = x1/2 where w > 0 is factor costs of input and, x, and y is output. The company operates in a competitive market and takes the price p, for granted.
Set up the company problem and solve it. Comment on how the result depends
of p and w.
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