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Consider a single output firm which uses three factors of production. Its production function is f (21, 22, 23) = =1 + 22 1/2 1/2 + 23 for = = (21, 22, 23) E RY. Given factor prices w1 = 2, w2 > 0, and w3 > 0, the cost of producing output q = 6 is minimized at z1 = 1, 22 = 4, 23 = 9. DETERMINE w2 and w3Step by Step Solution
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