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

question 5

Multiple Choice

the production function is f(x₁, x₂) = x^1/2₁x^1/2₂.If the price of factor 1 is $10 and the price of factor 2 is $20, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

• A)We can't tell without knowing the price of output.
• B)x₁ =2x₂.
• C)x₁ = 0.50x₂.
• D)x₁ = x₂.
• E)x₁ = 20x₂.

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Definitions:

Hand Muscle

Muscles located in the hand that enable movement of the fingers and thumb, contributing to grip and manipulation activities.

Suprahyoid

Referring to the group of muscles located above the hyoid bone, crucial for functions such as swallowing and tongue movement.

Flexor Pollicis Brevis

A muscle in the hand that flexes the thumb, contributing to the thumb's gripping function.

Hypothenar

The fleshy mass at the base of the little finger, composed of muscles used in controlling the movement of the pinky.