If a Firm's Production Function Is F(z₁,z₂)= Z₁ + Z₂

question 21

Multiple Choice

If a firm's production function is f(z₁,z₂) = z₁ + z₂, its minimum cost of producing y units of output is:

• A)y min(w₁,w₂).
• B)y(w₁ + w₂).
• C)y(w₁ + w₂)/2.
• D)yw₁, if w₁ < w₂.

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Definitions:

Estimated Direct Labor Cost

The projected cost of labor directly involved in the manufacturing of goods or provision of services, excluding indirect labor costs.

Expected Cash Collections

Projected amounts of money a business anticipates receiving from its customers or clients over a specific period.

Estimated Direct Labor Cost

The anticipated cost of labor directly associated with the production of goods or services, typically estimated before production begins.

Budgeted Cost

Budgeted cost refers to the estimated financial expense allocated for a specific purpose or project within a certain period.