The production function of a competitive firm is described by the equation y = 1/2G1/2 2.x6x. The factor prices are pi = $3 and p2 = $4 and the firm can hire as much of either factor it wants at these prices. What is the firm's marginal cost?

The production function of a competitive firm is described by the equation y = 1/2G1/2 2.x6x. The factor prices are pi = $3 and p2 = $4 and the firm can hire as much of either factor it wants at these prices. What is the firm's marginal cost?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: Factor Markets: With Emphasis On The Labor Market

Section13.1: Factor Market

Problem 1ST

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Question

The production function of a competitive firm is described by the equation y =
1/2,
1/2
2.x26x. The factor prices are pi
$3 and
P2
$4 and the firm can hire as much of either
factor it wants at these prices. What is the firm's marginal cost?

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