A Competitive Firm Uses Two Variable Factors to Produce Its

question 35

Multiple Choice

A competitive firm uses two variable factors to produce its output, with a production function q = min{x1, x2}.The price of factor 1 is $4 and the price of factor 2 is $5. Due to a lack of warehouse space, the company cannot use more than 17 units of x1. The firm must pay a fixed cost of $136 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?

• A) $36
• B) $33
• C) $21
• D) $9
• E) $17

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Definitions:

Wilder Penfield

A neurosurgeon known for his pioneering work in mapping the human brain's functions through electrical stimulation.

Motor Homunculus

A visual representation of the body within the brain, indicating how different parts are represented in the motor cortex, highlighting the control of various muscle groups.

Motor Control

The process by which humans and animals use their brain and nervous system to activate and coordinate the muscles and limbs involved in the performance of a movement.

Tourette Syndrome

Disorder of the motor system, characterized by involuntary vocalizations (sometimes including curse words and grunting sounds) and odd, involuntary movements of the body, especially of the face and head.