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Unformatted text preview: then as a function of an input price. 4) A farmer has a fixed quantity of an input that can be allocated to the production of two separate outputs y 1 and y 2 . In addition, another variable input can be used that jointly effects the production of both y 1 and y 2 . Mathematically set up the decision for a profit maximizing farmer. Derive and interpret the first order conditions....
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This note was uploaded on 08/25/2010 for the course ECONOMICS 408 at Cornell University (Engineering School).