Suppose That Nadine Has a Production Function 4x₁

question 7

Multiple Choice

Suppose that Nadine has a production function 4x₁ + x₂.If the factor prices are $4 for factor 1 and $2 for factor 2, how much will it cost her to produce 70 units of output?

• A)$700
• B)$1,260
• C)$140
• D)$70
• E)$105

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Definitions:

Sales Taxes

Taxes imposed by governments on the sale of goods and services, typically calculated as a percentage of the sales price.

Federal Spending

The total amount of money spent by the federal government of a country on various national programs, services, and obligations.

Health Care

The maintenance and improvement of physical and mental health through medical services.

Income Security

Financial protection against uncertainties causing loss of income, including programs like pensions, unemployment insurance, and social security.