# A firm has two variable factors and a production function f (x1, x2) = x11/2×12/2. The price of its.

A firm has two variable factors and a production function f (x1, x2) = x11/2×12/2. The price of its output is 4, the price of factor 1 is w1, and the price of factor 2 is w2. (a) Write the two equations that say that the value of the marginal product of each factor is equal to its wage. (b) For this production function, is it possible to solve the two marginal productivity equations uniquely for x1 and x2?

Don't use plagiarized sources. Get Your Custom Essay on

A firm has two variable factors and a production function f (x1, x2) = x11/2×12/2. The price of its.

For as low as $13/Page