A Competitive Firm Uses Two Inputs, X and Y

question 46

Multiple Choice

A competitive firm uses two inputs, x and y.Total output is the square root of x times the square root of y.The price of x is $17 and the price of y is $11.The company minimizes its costs per unit of output and spends $517 on x.How much does it spend on y?

• A)$766
• B)$480
• C)$655
• D)$517
• E)None of the above.

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Definitions:

Surfactant

A fatty molecule on the respiratory membranes.

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place.

Hyaline Membrane

A thickened, protein-rich film lining the alveoli (air sacs) in the lungs, often seen in respiratory distress syndrome.

Respiratory Membrane

A thin barrier in the lungs where gas exchange occurs, allowing oxygen to enter the bloodstream and carbon dioxide to be expelled.