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What do you want to do ? New mailCopy 1- Suppose that a firm producing commodity...

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1- Suppose that a firm producing commodity with the following production function: ? = 20?1?2 Then, assume that the maximum amount the firm can spend on these two inputs is $100 and price of commodities are as follow: ?1 = 4 , ?2 = 5
a. Use Lagrange Multiplier to determine the optimal production level at this firm.
b. What is the meaning of shadow price? How you can interpret it using the solution of part a?
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