Question
Show that if the production function is homogeneous of degree 2, then the cost minimizing demand for input i is given by: x(i) = h(w)*((y)^1/2)
Show that if the production function is homogeneous of degree 2, then the cost minimizing demand for input i is given by: x(i) = h(w)*((y)^1/2)
, where y and w are output and input prices and h(w) is some function of input prices.
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The End Of Poverty Economic Possibilities For Our Time
Authors: Jeffrey D Sachs, Bono
1st Edition
0143036580, 9780143036586
