A Firm Uses 3 Factors to Produce Its Output

question 15

Multiple Choice

A firm uses 3 factors to produce its output.Its production function is f(x, y, z) = min{x³/y, y², (z⁴ - x⁴) /y²}.If the amount of each input is multiplied by 2, its output will be multiplied by

• A)2.
• B)4.
• C)8.
• D)0.40.
• E)The answer depends on the original choice of x, y, and z.

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Definitions:

Distribution

In statistics, the way in which data or values are spread or distributed across possible values or intervals.

Normal Distribution

A symmetric, bell-shaped distribution of data where most of the observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Standard Deviations

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the data points are from the mean.

Deviation

The amount by which a single measurement differs from a fixed value such as the mean.