Linear technology. Suppose the production function is ya1z1a2 z2. Sketch the firm’s isoquants and the solution to its cost minimization problem. Show that the cost function is C(p, y)y min(p1/a1, p2...

Linear technology. Suppose the production function is y

a1z1

a2 z2. Sketch the firm’s isoquants and the solution to its cost minimization problem. Show that the cost function is C(p, y)

y min(p1/a1, p2 /a2). Sketch the cost curves. Derive the conditional input demand functions. Compare the results with those in Question 1.

Oct 11, 2022

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