A Firm Uses 3 Factors of Production

question 23

Multiple Choice

A firm uses 3 factors of production. Its production function is f(x, y, z) = min{ }. If the amount of each input is multiplied by 5, its output will be multiplied by

• A) 0.04.
• B) 125.
• C) 625.
• D) 25.
• E) The answer depends on the original choice of x, y, and z.

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Definitions:

Arbitrage

The simultaneous purchase and sale of the same asset in different markets to profit from tiny differences in the asset's listed price.

Shrimp

A small, decapod crustacean found in marine and freshwater environments, often consumed as seafood.

Manhattan

A densely populated borough of New York City, known for its significant cultural, financial, and commercial landmarks.

Foreign Prices

The cost or value of goods and services from a country different from the domestic market, often influenced by currency exchange rates.