Suppose That Nadine in Problem 1 Has a Production Function

question 16

Multiple Choice

Suppose that Nadine in Problem 1 has a production function 4x₁ + x₂. If the factor prices are $12 for factor 1 and $2 for factor 2, how much will it cost her to produce 50 units of output?

• A) $100
• B) $2,500
• C) $150
• D) $1,325
• E) $125

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Definitions:

Managers

Those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing, and controlling the organization's activities to reach its objectives.