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Suppose the two-input production function has corresponding cost function:
C (q, (w1, w2) =1+ (w1, w22q2)
a. Find conditional factor demands
b. is the production function homothetic?
c. draw the marginal and average cost curves for w1 = w2 = 1.
d. Find the profit function π (p, (w1, w2) for all values of p > 0, (w1, w2) > 0.
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