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The production function is the following: y12+3y2218y331(y4)21y50 The prices for inputs and
outputs are: p1:p2:priceofy1priceofy2p3:p4:p5:priceofy3priceofy4wageperhourc) If some external
constraints, out of the firm's control, fixed the levels of production at y1=7 and y2=6, just as y3=27
. What would be the problem facing the firm in this particular case? Graphically illustrate the
problem and the equilibrium conditions and interpret them in words. What becomes the whole set
of production in this particular case? [11 marks]

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The production function is the following y12+3y2218y331y4.pdf

  • 1. The production function is the following: y12+3y2218y331(y4)21y50 The prices for inputs and outputs are: p1:p2:priceofy1priceofy2p3:p4:p5:priceofy3priceofy4wageperhourc) If some external constraints, out of the firm's control, fixed the levels of production at y1=7 and y2=6, just as y3=27 . What would be the problem facing the firm in this particular case? Graphically illustrate the problem and the equilibrium conditions and interpret them in words. What becomes the whole set of production in this particular case? [11 marks]