Given the production function y= f(x1,x2)=x11/3x21/3. The amount of x2 is equal to 216 in the short run. Calculate the factor demand function Given the product price (P) is 6 and the price of factor 1 (w1) is 12, calculate the optimum amount of factor 1. Show your results on a graph. What will happen to the optimum level of factor 1 when both the price of the good and the price of factor 1 increase simultaneously?
Given the production function y= f(x1,x2)=x11/3x21/3. The amount of x2 is equal to 216 in the short run. Calculate the factor demand function Given the product price (P) is 6 and the price of factor 1 (w1) is 12, calculate the optimum amount of factor 1. Show your results on a graph. What will happen to the optimum level of factor 1 when both the price of the good and the price of factor 1 increase simultaneously?
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.3P
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Question
Given the production function y= f(x1,x2)=x11/3x21/3. The amount of x2 is equal to 216 in the short run.
- Calculate the factor
demand function - Given the product
price (P) is 6 and the price of factor 1 (w1) is 12, calculate the optimum amount of factor 1. Show your results on a graph. - What will happen to the optimum level of factor 1 when both the price of the good and the price of factor 1 increase simultaneously?
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