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Jesse sells lemonade outside of Gaels football games. They have two inputs in the production of lemonade: lemons (x1, measured in kg) and labour (x2,
Jesse sells lemonade outside of Gaels football games. They have two inputs in the production of lemonade: lemons (x1, measured in kg) and labour (x2, measured in hours). The production function for lemonade (in liters) is: _1 i f(x1,x2) = xix; Does this firm have constant, increasing or decreasing returns to scale? The cost of lemons is wl, and the cost of labour is L02. lf Jesse produces "y" liters of lemonade the cheapest way possible, then how many kilograms of lemons would they use? how many hours of labour? What is the cost function of producing this much lemonade
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