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

question 19

Multiple Choice

The production function is f(x₁, x₂) = _1
2. If the price of factor 1 is $6 and the price of factor 2 is $12, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

• A) x₁ = 12x₂.
• B) x₁ = 0.50x₂.
• C) x₁ = 2x₂.
• D) x₁ = x₂.
• E) We can't tell without knowing the price of the output.

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Definitions:

Delusion

A strongly held belief despite clear evidence against it, often indicative of a psychological disorder when severe and persistently held.

Hallucination

A sensory experience of something that does not exist outside the mind, often seen, heard, or felt by a person.

Negative Symptoms

Features that are diminished or absent in certain conditions, such as the reduced expression of emotions or decreased motivation, often associated with schizophrenia.

Loose Associations

A thought disorder characterized by disjointed thinking where the connection between thoughts is difficult to discern, often observed in schizophrenia.