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Omar is a local chocolatier who makes chocolate easter bunnies. His production function is l 1 f(x1, x2) = (x15 + 6x} )2, a nice
Omar is a local chocolatier who makes chocolate easter bunnies. His production function is l 1 f(x1, x2) = (x15 + 6x} )2, a nice and smooth production function, where x1 is the amount of labor used and x2 is the amount of chocolate. Assuming the cost of labor is $1 per unit, and the cost of chocolate is $2 per unit. If the firm was minimizing costs, how much would it cost to produce 5 chocolate bunnies? Draw a diagram of your solution
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