Unformatted text preview: ∑-ρ = ∏ * i i y c ( r,y * ) where i ρ is the price of output i , * i y is the supply function for output i , c is the cost function. Show that the first derivative of this profit function with respect to an output price will derive the supply function for that output. 4. Illustrate how linear programming can be used to model isoquants. 5. Can the following function be used as a profit function? ρ-ρ-ρ---ρ = ∏ 2 1 5 2 2 4 2 1 3 2 2 1 1 2 2 r r b r b r b r b r b a 6. Is the Cobb-Douglas production functionally separable such that some inputs can be aggregated into a composite input?...
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