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Tom's technology is given by the following production function: A 4 l m=$ 3,14 If m represents his production of cheese, x is the amount
Tom's technology is given by the following production function: A 4 l m=$ 3,14 If m represents his production of cheese, x is the amount of milk he uses, and y is how much sugar he uses. 1) Compute the marginal product of milk, the marginal product of sugar, and the technical rate of substitution. 2) What kind of returns to scale does Tom's technology show? Please explain your answer. 3) Represent in a graph with some isoquants Tom's technology. 4) Assume that the unit price of milk is px and the unit price of sugar is py. Because Tom is not the only person producing cheese, he acts as a price-taker on both markets. Find Tom's total cost function
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