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Consider a protmaximising rm that is a pricetaker in all of the markets in which it participates. Suppose that this rm's production set is mam91
Consider a protmaximising rm that is a pricetaker in all of the markets in which it participates. Suppose that this rm's production set is mam91 1,0), 10 g yl g 0}. Recall that a production set is the set of all feasible production plans. A production plan is a \"net output\" (or \"netput\") vector, where a negative \"net output\" of a commodity means that the commodity is a \"net input\". A particular production plan for this rm consists of a net output for commodity one (yl E R) and a net output of commodity two (yg E R). You may assume that (131,192) 6 Ram\" where p1 is the price of commodity one (191) and p2 is the price of commodity two. (In other words, both commodity prices must be strictly positive real numbers.) //\\ Y = {(1917192) 6 R21 (92 1. Illustrate the production set for this rm (Y). (Hint: When is y1 1 2 0? When is y1 1
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