In Problem 9, Suppose That Irma's Production Function Is F(x₁

question 7

Multiple Choice

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $5 and the price of factor 2 is w₂ = $15, then her supply function is given by the equation

• A) S(p) = p(max{w₁, 3w₂} )².
• B) S(p) = p(min{w₁, 3w₂} )².
• C) S(p) = 10p.
• D) S(p) =.
• E) S(p) = min{ 5p, 45p}.

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