A Firm's Production Function Is F(x1, X2) =

question 10

Multiple Choice

A firm's production function is f(x1, x2) = . If the price of factor 1 is w1 = $5 per unit and the price of factor 2 is w2 = $25 per unit, then its supply function is given by the equation S(p) =

• A) .
• B) max{w1, 5w2}p.
• C) min{w1, 5w2}p.
• D) 10p.
• E) min{5p, 125p}p.

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Definitions:

Indirect Method

A method for preparing the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital.

Net Income

The net income of a business once all costs and taxes are subtracted from its total revenue.

Trading Purposes

Activities conducted with the objective of profiting from short-term fluctuations in market prices.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments, reflected in a company's cash flow statement.