A Firm Has the Production Function F(x₁, X₂)= X¹¹x⁰

question 2

Multiple Choice

A firm has the production function f(x₁, x₂) = x¹¹x^0.50₂.The isoquant on which output is 30^5/10 has the equation

• A)x₂ = 30x^-21.
• B)x₂ =30x²¹.
• C)x₂ = 30x^-0.50₁.
• D)x₁/x₂ = 2.
• E)x₁ =0.50x^-0.50₂.

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Definitions:

Quantity Standard

A specific measure established to gauge the expected or optimal quantity of input required to produce a unit of output.

Price Standard

A pre-determined cost per unit of input or output, used for setting budgets and measuring performance.

Variable Overhead Efficiency Variance

Variable overhead efficiency variance is a metric used to measure the difference between the expected (standard) and actual use of variable overhead resources in production.

Standard Machine-Hours

A predetermined measure of how much machine time is expected for a task, used in cost accounting.