Question

Assume one input, one output production function which we know very little about. But over a...

Assume one input, one output production function which we know very little about. But over a period of three years we see that (1) with p = 1,w = 1 the firm choose x = 2,y = 5 (2) with p = 3,w = 0.5, the firm will choose x = 4 and y = 6 and (3) withp=4,w=2,thefirmwillchoosex=3,y=11. Graph the isoprofit lines associated with each pair of prices and quantity choices. Show on your graph what we have learned about the firm’s technology. Note we do not know the functional form of the production function.

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