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Q. 10. HW 9 (MO) A rm that uses two inputs to produce output has production function 3x1/3 y 1/3 , where x is amount of input 1 and y is amount of input 2. price of output is 1 and prices of inputs are wx and wy . rm is constrained by government to use exactly 1000 units of input 1. How much of input 2 does it use? What is most that it is willing to bribe an inspector to allow it to use another unit of input 1? 11. HW 10 (MO): A rm that uses two inputs to produce output has production function 4x1/4 y 3/4 . price of output is 1 and price of each input is 1. rm is constrained to use exactly 1000 units of input x. How much of input y does it use? What is approximately maximum amount rm is willing to pay to be allowed to use e more units of input x, for e small?
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