Suppose that a rm has the production function

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1. Suppose that a rm has the production function given by f(x1,x2)=4SQRT(x1*x2) Let w1 = $64 and w2 = $1. What is the total cost of producing 20 units of output in the long-run?

2. Consider the same firm as in question 1, who is facing the same input prices w1 and w2 as above. Suppose that we are now in the short-run and the firm has to use-x2 = 4. (x2 bar) What is the short-run cost of producing 72 units of output?

Reference no: EM13744687

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