A Firm Has Production Function F (X1, X2, X3, X4)

question 33

Multiple Choice

A firm has production function f (x1, x2, x3, x4) =min{x1, x2} + min{x3, x4}. This firm faces competitive factor markets where the prices for the four factors are w1 = $4, w2 = $8, w3 = $5, and w4 = $3. The firm must use at least 20 units of factor 2. The cost of producing 100 units in the cheapest possible way is

• A) $700.
• B) $1,040.
• C) $880.
• D) $1,300.
• E) $300.

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Definitions:

Pneumatic ABS

Anti-lock Braking System (ABS) that uses compressed air to prevent the wheels from locking up during braking, especially in heavy vehicles like trucks and buses.

Service Chambers

Components typically found in air brake systems of large vehicles, used to convert compressed air into mechanical force to apply the brakes.

Modulations Per Second

A measure of how many times a signal's modulation changes within one second, indicative of the signal’s variation rate.

Pneumatic ABS

An Anti-lock Braking System for air-braked vehicles, particularly large trucks and buses, that prevents wheel lockup during braking.