1).Suppose that p(x,y)-represents the production of a two-product firm. The company produces x units of...
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Algebra
1).Suppose that p(x,y)-represents the production of a two-product firm. The company produces x units of the first product at a cost of c? each and y units of the second product at a cost of c? each. The budget constraint, B, is a constant given by the following formula. Use the method of Lagrange multipliers to find the value of ? in terms of Px. Py, C?, and C?. The resulting equation holds for any production function p and is called the Law of Equimarginal Productivity.B=C?X+C?YChoose the correct answer below.a).? ={Px /C1=PyC2}b). ?=Px=C1=Py=C2c).?={Py/C1=Px/C2}d).?={C1/Px=C2/Py}
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