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

question 19

Multiple Choice

In Problem 11, the production function is f(x₁, x₂) . If the price of factor 1 is $10 and the price of factor 2 is $20, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

• A) We can't tell without knowing the price of output.
• B) x₁ = 2x₂.
• C) x₁ = 0.50x₂.
• D) x₁ = x₂.
• E) x₁ = 20x₂.

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Definitions:

Whole blood

denotes blood drawn directly from the body from which none of the components, such as plasma or platelets, have been removed.

Blood clot

A mass formed from platelets and fibrin in the blood to stop bleeding, but can be dangerous when formed inside veins or arteries obstructing blood flow.

Plasma

The fluid component of blood, in which formed elements are suspended; makes up 55% of blood volume.

Formed elements

The solid components of blood, including red blood cells, white blood cells, and platelets, which are crucial for various bodily functions such as oxygen transport and immune response.