A perfectly competitive firm has the following input requirement set v(y)(x1, X2): ax+bx22y}. If the minimum cost of production at wi=w2=1 is equal to 6, what is y equal to?What can you say about the elasticity of substitution for this production function?

The minimumized cost production means to use the inputs and their combinations in such a way that…

A perfectly competitive firm has the following input requirement set v(y)(x1, x2): ax1+ bx2 y}. If the minimum cost of production at w₁-W2=1 is equal to 6, what is y equal to? What can you say about the elasticity of substitution for this production function?

A perfectly competitive firm has the following input requirement set v(y)(x1, x2): ax1+ bx2 y}. If the minimum cost of production at w₁-W2=1 is equal to 6, what is y equal to? What can you say about the elasticity of substitution for this production function?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.6P

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A perfectly competitive firm has the following input requirement set v(y)(x1, X2): ax+
bx22y}. If the minimum cost of production at wi=w2=1 is equal to 6, what is y equal to?
What can you say about the elasticity of substitution for this production function?

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