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:

Affiliated Director

A board member who has a close relationship with the company or its principals, which could affect impartiality.

Day-to-Day

Describes activities or tasks that occur on a regular, daily basis, often relating to routine or ordinary operations.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and is authorized to act as a single entity.

Officer

typically refers to a person holding a position of authority within an organization, especially within the military or law enforcement, but also in corporate and governmental contexts.