Question

If we have a competitive industrial form that has the production function q=z1^(1/4)*z2^(a)z3^(1/4) q is the...

If we have a competitive industrial form that has the production function q=z1^(1/4)*z2^(a)z3^(1/4)

q is the output, z1 z2 z3 is the production inputs and a is parameter.

Assume that production input 2 (z2) is fixed in the short run

1) Find the short run conditional input demand functions for the firm

2) Find the short run cost function for the firm

3) Find the short run supply function for the firm

4) what happens to the conditional input demand, the cost of production, and supply in short-run if there is a decrease in a?

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