(b) What is the firm's marginal cost when it is producing y units of output?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 5E
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A firm produces its output using the following production function:
ƒ(x₁, x₂) = x + x ²
where x₁ is the amount of input 1 and x2 is the amount of input 2.
(a) Find the conditional input demand function for inputs 1 and 2, as well as the cost function for this firm.
Transcribed Image Text:A firm produces its output using the following production function: ƒ(x₁, x₂) = x + x ² where x₁ is the amount of input 1 and x2 is the amount of input 2. (a) Find the conditional input demand function for inputs 1 and 2, as well as the cost function for this firm.
(b) What is the firm's marginal cost when it is producing y units of output?
Transcribed Image Text:(b) What is the firm's marginal cost when it is producing y units of output?
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