In Problem 11, the Production Function Is F(x₁, X₂)

question 18

Multiple Choice

In Problem 11, the production function is f(x₁, x₂) . If the price of factor 1 is $14 and the price of factor 2 is $7, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

• A) x₁ = 0.50x₂.
• B) x₁ = x₂.
• C) We can't tell without knowing the price of output.
• D) x₁ = 2x₂.
• E) x₁ = 7x₂.

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Definitions:

Native Americans

Indigenous peoples of the Americas, the original inhabitants before European colonization.

Revolutionary War

A conflict from 1775 to 1783 in which the American colonies successfully fought for independence from British rule, becoming the United States.

Various Tribes

Various Tribes generally refers to the diverse indigenous communities and groups that lived in specific regions before the advent of colonization or external settlers, each with distinct cultures, languages, and traditions.

Thomas Paine

An English-American political activist, philosopher, and writer whose works, including "Common Sense," influenced the American Revolution.