A Firm Has the Production Function F(X, Y) =

question 34

Multiple Choice

A firm has the production function f(X, Y) = , where X is the amount of factor x used and Y is the amount of factor y used. On a diagram we put X on the horizontal axis and Y on the vertical axis. We draw some isoquants. Now we draw a straight line on the graph and we notice that wherever this line meets an isoquant, the isoquant has a slope of -9. The straight line we drew

• A) is horizontal.
• B) is a ray through the origin with slope 3.
• C) is vertical.
• D) is a ray through the origin with slope 4.
• E) has a negative slope.

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Definitions:

Logarithm

The power to which a base, such as 10, must be raised to produce a given number. Expressed as \(log_{base}(number) = exponent\).

Function

A relation between sets that associates each element of a first set to exactly one element of the second set.

Graph

A visual representation of data, equations, or relationships between variables.

Logarithm

The exponent to which a base, often 10 or e, needs to be elevated to yield a specific number.