Condition that the optimal choice of inputs has to satisfy

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Reference no: EM131790610

Question: Consider the technology represented by y (x₁)⁰⁴ (x₂)^0.6 The marginal products are MPI 0.4/xi and MP2 0.6/x2. We now consider the problem of cost minimization.

a. Write the problem of cost minimization. Interpret

b. What is the condition that the optimal choice of inputs has to satisfy? Interpret.

c. tain and interpret the cost-minimizing optimal demand functions the inputs.

d. Obtain and interpret the for two optimal cost function.

Reference no: EM131790610

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