Unformatted text preview: 3. Given the two conditional demand (cost minimization) functions below, solve for the supply function for output for a profit maximization firm. 2 1 1 2 2 * 1 ) ( 2 1 r r y x = 2 1 2 1 2 * 2 ) ( 2 1 r r y x = 4. An agricultural input has been imported but with import quota restrictions (quantity). Farmers have been using this input to maximize revenue. The ministry of agriculture has asked you to determine how much of this input would be used if the quota is lifted and farmers use the quantity of this input that maximizes profit. How could you do this analysis?...
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- Economics, Average cost, Cost curve, average cost curve