Consider a simple economy in which two
inputs, land and labor, are used to produce two outputs, corn
(Y1) and wheat (Y2). Both the input and
output markets are all characterized by perfect competition. The
technology can be described by the following total cost
functions
C1 = 2Y1 (w +
2r); C2 = 2Y2 (3w + r)., where
w is labor's wage rate and r is the rental rate on land.
Consider a simple economy in which two inputs, land and labor, are used to produce two outputs, corn (Y1) and wheat (Y2)
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Consider a simple economy in which two inputs, land and labor, are used to produce two outputs, corn (Y1) and wheat (Y2)
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