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Question: A firm has a production function:
y = f(x1,x2) = (2x11/2 + x21/2)2
a) Let w1 and w2 represent the prices of inputs 1 and 2 respectively. Find the firm's cost minimizing conditional factor demands.
b) If w1=2 and w2 = 1, what is the firm's cost function, c(y)?
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