Hand written solutions are strictly prohibited 1/3 1/3'where 1 is the quantity of labor input, 2 is the quantity of capital input, and y is the quantity of output. The per-unit price ofBridget's Widgets produces widgets with the production function, y = x₁x2labor input is w₁ = 20 and the per-unit price of capital input is w₂ = 80.What is Bridget's long run conditional demand function for labor input, x1, given that both inputs can be varied in the long run?x = 0.5y³/2○ x = 2y³O x = 2y³/2O x = 0.5y³

Production function refers to functional relationship between the output and inputs. Change in…

r input is w₁ 20 and the per-unit price of capital input is w₂ = 80. it is Bridget's long run conditional demand function for labor input, x1, given that both inputs can be varied in the long run? == 0.5y³/2 == 2y³

r input is w₁ 20 and the per-unit price of capital input is w₂ = 80. it is Bridget's long run conditional demand function for labor input, x1, given that both inputs can be varied in the long run? == 0.5y³/2 == 2y³

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.10P

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Question

Hand written solutions are strictly prohibited

1/3 1/3
'
where 1 is the quantity of labor input, 2 is the quantity of capital input, and y is the quantity of output. The per-unit price of
Bridget's Widgets produces widgets with the production function, y = x₁x2
labor input is w₁ = 20 and the per-unit price of capital input is w₂ = 80.
What is Bridget's long run conditional demand function for labor input, x1, given that both inputs can be varied in the long run?
x = 0.5y³/2
○ x = 2y³
O x = 2y³/2
O x = 0.5y³

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