New answers tagged

5

Given the production function $\sqrt{2z_1+3z_2}$, cost function can be obtained by minimizing cost: \begin{eqnarray*} \min_{z_1, z_2} \ \ w_1z_1+w_2z_2 \\ \text{s.t.} \sqrt{2z_1+3z_2} \geq q\end{eqnarray*} Solving it we get conditional input demand as follows: \begin{eqnarray*} (z_1, z_2) = \begin{cases} \left(\frac{q^2}{2}, 0\right) \ \text{if } \frac{w_1}{...


Top 50 recent answers are included