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Suppose that a firm is producing two goods, good x and good y. Suppose further that the firm's total cost function can be expressed as
Suppose that a firm is producing two goods, good x and good y. Suppose further that the firm's total cost function can be expressed as
= (, )
a. Describe verbally and economically what does / represents.
b. Without knowing anything about the cost function per se, what do we automatically know about ^ 2/ and ^2 / ? Why can you conclude this?
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