11w 1'" - . , ; ,
Marg ice of capital rate . .
Factors OFPmdution Real rentll Pr suS Real interest rate
- . ver . _
Production function Economlc Pyofgt National SaVing (vi _ :11
Comm mums to scale accourlting pro rocluction Private saving g) iv
Problem Set 4. Cost and Cost Functions
1. A firm has the following production function: = . If the minimum cost of production is
equal to 4 when both input prices equal 1, what is y equal to?
Intuitively, x and z will be equal since they contrib