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Consider a firm with the following production function: f(x1,x2) = 4*x1^(1/2)*x2^(1/2) where x 1 and x 2 are the two inputs. Q1) If the current
Consider a firm with the following production function:
f(x1,x2) = 4*x1^(1/2)*x2^(1/2)
where x1and x2are the two inputs.
Q1) If the current input level isx2=10 and the output price is $13 and the price of x1 is $10, then how many units the profit-maximizing level of x1is?
Q2) If the current input levels are x1=13 and x2=7, the marginal rate of technical substitution is ?
Q3) The firm wants to produce 60 units of the output. The price of x1=$3 and the price of x2=12. Then how many unit the cost-minimizing level of x1is?
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