This is an advanced microeconomics question; There are two factors and the produ

Question

This is an advanced microeconomics question;

There are two factors and the production function is F(x_1, x_2) = min{a_1x_1, a_2x_2}, where a_1, a_2> 0. Draw the unit isoquant in the x_1, x_2 plane. Calculate the conditional factor demand function (i.e., x(w_1,w_2, 1)) and cost function values for the unit output (i.e., c(w_1,w_2,1)). Consider the one-consumer, one producer economy discussed in class. Compute the Walrasian equilibrium prices, profits, and consumptions when the production function is f(z) =10 z^1/2, the utility function is u (x_1, x_2) = 2 In x_1 + In x_2, and the total endowment of labor is 1.

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