Suppose That a Particular Good, Y, Is Produced According to the Following

question 68

Multiple Choice

Suppose that a particular good, y, is produced according to the following production function y = min(ax₁,bx₂) where x₁ and x₂ are inputs, and a and b are positive constants. Suppose further that x₁/x₂ currently equals b/a. Then:

• A)an additional unit of x₁ or x₂ will not increase output.
• B)the current ratio of input- usage is technically inefficient.
• C)if a > b, the production of any output level requires more x₁ than x₂.
• D)an additional unit of x₁ will increase output.

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Definitions:

Unsteadiness

The quality or condition of being unstable or lacking balance.

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Sensory information from the inner ear that helps maintain balance and spatial orientation.

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A region of the brain that plays a significant role in motor control, and it may also be involved in some cognitive functions.

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The harmonious functioning of muscles or groups of muscles for smooth and efficient movement, often involving the integration of sensory input with motor output.