Mathematical economics, Shadow Prices

2. Shadow prices For the following problems, solve for the optimal point and shadow price, calculate V for 0:80, 8 c=81, and 0:85. Observe whether or not the shadow price changes with c and how av changes with c increasing dc. Carry several decimal places in your calculations. Time-saving-tip: L1 and L2 do not change so, once you calculate the relationship between $1 and f2, you use it for all values of c. ' 2 2 a. max F (x1,x2)=x?'5"x'4\" subject to x1 +,r2 =c. II :12 b. max F (x1,x2) = 41535015340 subject to 2x1 + 4x2 = c. XI J92