Suppose the cost function C(w1, w2, y) = \(y\left(w_1+\sqrt{w_1 w_2}+w_2\right)\), where w1 and w2 are the prices of 2 inputs which are used in production of y. Which of the following properties of the cost function C(w1, w2, y) is correct?
1
Cost function C(w1, w2, y) is monotone, concave and continuous function in w1, w2.
2
Cost function C(w1, w2, y) is a non-monotone, convex and continuous function in w1, w2.
3
Cost function is continuous in w1 and w2 and discontinuous function in y.
4
Cost function is a continuous function and homogeneous function in degree 0.