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
This is the end of the preview. Sign up
access the rest of the document.
This note was uploaded on 08/25/2010 for the course ECONOMICS 408 at Cornell.