Al's Production Function for Deer Is F(x₁, X₂)= (2x₁

question 21

Multiple Choice

Al's production function for deer is f(x₁, x₂) = (2x₁ + x₂) ^1/2, where x₁ is the amount of plastic and x₂ is the amount of wood used.If the cost of plastic is $4 per unit and the cost of wood is $4 per unit, then the cost of producing 8 deer is

• A)$16.
• B)$96.
• C)$256.
• D)$128.
• E)$32.

---

Definitions:

Plant Expansion

A process by which a company enlarges its operational capacity or adds to its production capabilities, possibly by acquiring more space, machinery, or buildings.

Total Amounts

The full quantities or sums reached by counting, calculating, or combining all parts.

Variable Costs Per Unit

Costs that vary directly with the level of production or volume of goods produced, altering according to the amount produced.

Production Increases

Refers to a rise in the quantity of goods and services produced by a company or economy over a certain period.