ARME 608First ExamFall 19951.Plot the average and marginal cost functions that would be generated under the technologyrepresented by the production functionyaxbx cx=+-23where y is output, x is input, and a > b > |c|. Relate critical points (i.e. minimum, maximum,inflection) on these cost curves to critical points on the production function.2.Suppose the production function is given byyxx=1523...Find the marginal rate of technical substitution of x1for x2and solve for an isocline.Does an isoquant lie closer to the x1or the x2axis (assuming same scale)?3.Consider a farm that produces both corn and soybeans. Suppose that the production function for
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