3 what about demand function Example: given a cost function c(w, q)=qwiw2 then what's the corresponded tech and factor demand function? x, (w, q=aqui w2 x,w, g)=(1-aqwi w? g=a aXx Proposition; elasticity of scale e(x, q AC(q MC(g lecture 4 for Chu Kechen Honors Collegelecture4 for Chu Kechen Honors College 3.what about demand function ▪ Example: given a cost function , then what’s the corresponded tech. and factor demand function? ▪ Proposition9: elasticity of scale 1 1 2 c q qw w ( , )  − w = ( ) ( , ) ( ) AC q e x q MC q = 1 1 1 1 2 x q qw w ( , )    − − w = 2 1 2 x q qw w ( , ) (1 )    − w = − 1 1 1 2 q x x (1 )       − − − = −