An Orange Grower Has Discovered a Process for Producing Oranges

question 26

Multiple Choice

An orange grower has discovered a process for producing oranges that requires two inputs.The production function is Q = min{2x1, x2}, where x1 andx2 are the amounts of inputs 1 and 2 that he uses.The prices of these two inputs are w1 = $5 and w2 = $2,respectively.The minimum cost of producing 140 units is therefore

• A)$980.
• B)$630.
• C)$1,400.
• D)$280.
• E)$700.

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