Question
The production function of a company is ( 1 , 2 ) = 1 1/3 2 1/3 . The cost function of the company is
The production function of a company is (1, 2) = 11/3 21/3. The cost function of the company is (1, 2, ) = 211/2 21/2 3/2. a. If the wages of the factors of production are 1 = 1 and 2 = 1 and the value of Y is p, what is the marginal cost of the enterprise and what is the supply function? If the wages of the factors of production are 1 = 4 and 2 = 9 and the value of Y is p, what is the marginal cost of the enterprise and what is the supply function? b. If the wages of the factors of production are w1 and 2 and the value of Y is p, what is the marginal cost of the enterprise and what is the supply function?
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