The Production Function of a Competitive Firm Is Described by the Equation

question 23

Multiple Choice

The production function of a competitive firm is described by the equation y = The factor prices are p1 = $1 and p2 = $36 and the firm can hire as much of either factor it wants at these prices. The firm's marginal cost is

• A) decreasing.
• B) constant and equal to 19.
• C) constant and equal to 3.
• D) increasing.
• E) None of the above.

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