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PLZ PLZ HELP A price-taking firm producing a single product according to the production function y = f(x1, x2) faces price p for its output
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A price-taking firm producing a single product according to the production function y = f(x1, x2) faces price p for its output and prices w1, w2 for its inputs.Assume that f (0, 0) = 0 and that f is strictly increasing, strictly concave, twice differentiable, and such that 82 f 63316322 for all m1, $2 > 0. Let $100, w1, mg) and 2:2(p,w1, 'UJZ) be the rm's unconditional demand functions for inputs 1 and 2. Prove that the demand for input 1 is increasing in the price of input 2, that is, (1171,5132) 0 for all m1, $2 > 0. You may use Without proof the fact that the demand for input 2 is decreasing in its own price, that is, 6332 awlaw2)Step by Step Solution
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