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In: Economics

Suppose a Cobb Douglass production function with two inputs and exponents inside the production function y...

Suppose a Cobb Douglass production function with two inputs and exponents inside the production function y = x α1 1 x α2 2 that are less than one. Derive the profit maximizing choices of x1, x2, and y for arbitrary prices. How does this simply if α1 and α2 sum up to one?

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Rahul Sunny answered 3 months ago
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