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Suppose a plant has a production function F(z) = (z1^1/4)*(z2^1/2). a. Show that there is a unique critical point. b. Draw the level sets and
Suppose a plant has a production function F(z) = (z1^1/4)*(z2^1/2).
a. Show that there is a unique critical point.
b. Draw the level sets and you will see that the critical point is not the maximizer.
c. Is there a maximizer? Hint: Consider the prot with input z = ( , ). For what values of does the
prot increase with ?
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