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Consider the following production function yf ( z ) z / 2 / 2 Assuming that the price of output is p and the prices

Consider the following production function yf(z) z/2/2 Assuming that the price of output is p and the prices of inputs are w1 and w2 respectively, a) State the firm's profit maximization problem (1 mark) b) Derive the firm's factor demand functions for z1 and z2 (6 marks) c) Derive the firm's supply function. (2 marks) d) Derive the firm's profit function. (2 marks) e) Verify Hotelling's Lemma for q(w.p), z1(w.p) and z(w,p)

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