Question

# A competitive firm’s production function is f(x1,x2)= 24x1^1/2x2^1/2. The price of factor 1 is 1, the...

A competitive firm’s production function is f(x1,x2)= 24x1^1/2x2^1/2. The price of factor 1 is 1, the price of factor 2 is 2 and the price of output is 4. (a) Write down the cost function in terms of both the inputs. (b) What is the long-run cost minimization condition for this firm? (c) In what proportions should x1 and x2 be used if the firm wants to minimize its costs?

#### Homework Answers

Answer #2

Part a)

Part b)

long run cost minimization condition

Part c)

In order to minimize cost , amount of input 1 used should be twice the amount of input 2 used

answered by: anonymous
Know the answer?
Your Answer:

#### Post as a guest

Your Name:

What's your source?

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Not the answer you're looking for?
Ask your own homework help question
ADVERTISEMENT
##### Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

ADVERTISEMENT