The Production Function Is F(x₁, X₂) = ₁

question 21

Multiple Choice

The production function is f(x₁, x₂) = _1
2. If the price of factor 1 is $10 and the price of factor 2 is $15, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

• A) x₁ = 1.50x₂.
• B) x₁ = x₂.
• C) x₁ = 15x₂.
• D) x₁ = 0.67x₂.
• E) We can't tell without knowing the price of the output.

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Definitions:

Human Needs

Fundamental requirements for human survival and well-being, such as food, safety, love, and esteem.

Introverted

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation.

Basic Factors

Fundamental elements or components that are essential and foundational to a process, situation, or system.

Emotionally Unstable

A characteristic referring to individuals who experience rapid, often extreme fluctuations in mood.