A Firm with the Production Function F (X1, X2, X3

question 76

Multiple Choice

A firm with the production function f (x1, x2, x3, x4) =min{x1, x2, x3, x4} faces input prices w1 = $1, w2 = $2,w3 = $2, w4 = $5 for factors 1, 2, 3, and 4. The firm must use at least 17 units of factor 2. The lowest cost at which it can produce 100 units of output is

• A) $1,000.
• B) $400.
• C) $317.
• D) $615.
• E) $300.

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Definitions:

Output Measure

Metrics or indicators used to assess the quantity or quality of products or services produced by an individual, team, or organization.

Departments

Distinct units within an organization, each focused on a specific area of function, like marketing or finance.