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.

---

Definitions:

Express Agreement

A legal contract in which all terms are explicitly stated and agreed upon by all parties involved.

E-contracts

Electronic forms of contracts that are created, signed, and maintained in digital format, often facilitated by the internet.

Legally Valid

Holding sufficient standing or force in law; capable of being legally or lawfully recognized or enforced.

Voidable

A situation or agreement that may be legally declared invalid or cancelable by one of the parties involved.