A Firm Has Production Function F (X1, X2, X3, X4)=

question 39

Multiple Choice

A firm has production function f (x1, x2, x3, x4) = min{1, x2} +min{x3, x4}.This firm faces competitive factor markets where the prices for the four factors are w1 = $4, w2 = $8, w3 = $5, and w4 = $3.The firm must use at least 20 units of factor 2.The cost of producing 100 units in the cheapest possible way is

• A)$700.
• B)$1,040.
• C)$880.
• D)$1,300.
• E)$300.

Understand the mechanisms of innovation and its challenges within different economic structures.

Describe the role of government in a laissez-faire capitalist system.

Identify how the market system restricts business risk to owners and investors leading to specific economic outcomes.

Understand the flow of goods, services, and money within the economic system as illustrated by the circular flow diagram.

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Definitions:

Action Potentials

Rapid, temporary changes in the electrical charge of a cell's membrane, allowing for the transmission of signals along neurons.

Graded Potentials

Changes in membrane potential that vary in size and do not follow the all-or-none principle, important in the initiation of action potentials.

Sodium-Potassium Pump

A vital cell membrane protein that exchanges sodium for potassium across the plasma membrane, critical for cellular functions.

Divergence

The functional arrangement of neurons in which a neuron sends signals to two or more postsynaptic neurons. Compare with convergence.