The Production Function Is F(x₁, X₂)=x^1/2₁x^1/2₂

question 16

Multiple Choice

the production function is f(x₁, x₂) =x^1/2₁x^1/2₂.If the price of factor 1 is $14 and the price of factor 2 is $7, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

• A)x₁ = 0.50x₂.
• B)x₁ =x₂.
• C)We can't tell without knowing the price of output.
• D)x₁ = 2x₂.
• E)x₁ =7x₂.

---

Definitions:

Qualitative Mission Statement

A statement that conveys a company's core values and goals through descriptive and quality-focused language.

Strategic Focus

The concentration of an organization's efforts and resources on a specific business objective or direction to achieve competitive advantage.

Stakeholders

Individuals or groups that have an interest or concern in the organization and can affect or be affected by the business' activities, objectives, and policies.

Executive Summary

A brief, comprehensive summary of a business report or proposal, highlighting the main points and conclusions.