In Problem 12, Al's Production Function for Deer Is F(x₁

question 13

Multiple Choice

In Problem 12, Al's production function for deer is f(x₁, x₂) , where x₁ is the amount of plastic and x₂ is the amount of wood used. If the cost of plastic is $4 per unit and the cost of wood is $4 per unit, then the cost of producing 8 deer is

• A) $16.
• B) $96.
• C) $256.
• D) $128.
• E) $32.

---

Definitions:

Financial Structures

The specific mixture of long–term debt and equity that a company uses to finance its operations and growth.

Equity

Equity represents an owner's share in the assets of a company, remaining after deducting liabilities.

Debt

Debt is an amount of money borrowed by one party from another, under the condition that it is to be repaid at a later date, usually with interest.

Restrictive Covenants

Provisions in a contract or bond agreement that limit certain actions of the borrower, to protect the interests of the lender.