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The production function is f(x1, x2) = x2 * ln(x1 + 1). Assume that the firm is in the short-run such that x2 = 2.
The production function is f(x1, x2) = x2 * ln(x1 + 1). Assume that the firm is in the short-run such that x2 = 2. Set up the firm's profit maximization problem and find the short-run supply curve (as a function of p, w1, and w2). Then, sketch the short-run supply curve.
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