An Orange Grower Has Discovered a Process for Producing Oranges

question 44

Multiple Choice

An orange grower has discovered a process for producing oranges that requires two inputs. The production function is Q = min{2x1, x2}, where x1 and x2 are the amounts of inputs 1 and 2 that he uses. The prices of these two inputs are w1 = $5 and w2 = $10, respectively. The minimum cost of producing 160 units is therefore

• A) $2,000.
• B) $2,400.
• C) $800.
• D) $8,000.
• E) $1,600.

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Definitions:

Regulatory Forces

External rules and regulations imposed by governing bodies that affect how businesses operate and interact with customers.

F. Hoffman-LaRoche Ltd.

A global pharmaceutical and diagnostics company that focuses on advancing science to improve people's lives.

BASF AG

A leading global chemical company headquartered in Ludwigshafen, Germany, known for its vast range of products across multiple industries.

Price Fixing

An illegal agreement among competitors to maintain the price of a product or service at a fixed or coordinated level, restricting competition.