The following description will be used in questions 2 to 6….

The following description will be used in questions 2 to 6. Consider two distinct production functions (f1 and f2) that use two inputs (x1 and x2) to produce one output (y). Such functions have the form f1=min (a*x1 , b*x2) and f2=c*x1+d*x2, where a,b,c and d are positive scalars, p1 is the cost of one unit of input x1, p2 is the cost of one unit of input x2, and y represents the production level.