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3) A cost‐minimising producer faces the following production constraint: ? = ?11/2?21/2, where ? is the...

3) A cost‐minimising producer faces the following production constraint: ? = ?11/2?21/2, where ? is the level of output and ?1, ?2 are two inputs whose prices per unit are given by ?1 and ?2, respectively.

a) Find the expressions for the optimal input levels of ?1, ?2 at a given cost level ?

b) Express cost as a function of quantity, ?(?)

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