ECO100 Lecture Notes - Lecture 6: Eisenbahnen Und Verkehrsbetriebe Elbe-Weser

Consider the following production function

q = f(z₁,z₂) = z₁^1/3 z₂^1/3

a) Solve for contingent input demand functions z_i^c(r_i,r_j,q). Find the cost function.

b) Set the profit maximization problem and solve for input demand functions, z_i(r_i,r_j,P). Find the supply function.

c) Find the profit function. Derive the Hotelling's Lemma for this production function.

Please explain, and show workings, thank you.

37. What is the deadweight loss associated with the private market equilibrium? (a) X + Y. (b) F +K. (c) K+L. (d) I + J.

37. What is the deadweight loss associated with the private market equilibrium? (a) F + K. (b) X + Y. (C) I + J. (d) K + L.