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

---

Definitions:

Rate

A quantitative measure indicating the frequency or occurrence of an event within a given time period.

Symmetrical Faces

Symmetrical faces refer to facial features that are evenly balanced and proportionate, often considered attractive in human aesthetics.

Attractive

Having qualities that arouse interest or desire, often used in the context of physical appearance or personality.

Healthy

Being Healthy refers to a state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.