Suppose That the Production Function Is F (X1, X2)= (Min{x1

question 23

Multiple Choice

Suppose that the production function is f (x1, x2) = (min{x1, 2x2}) .5.

• A)There are constant returns to scale.
• B)The cost function is a min function.
• C)If the price of x₁ is more than twice the price of x₂, only x₂ is used in production.
• D)A cost-minimizing firm producing 5 units of output will use 25 units of x₁ and some x₂.
• E)The cost function is a linear function of output.

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Definitions:

Equilibrium

A state in a chemical reaction where the rates of the forward and reverse reactions are equal, leading to no net change in the concentration of reactants and products.

Arsenopyrite

A metallic gray, natural mineral compound of arsenic, iron, and sulfur, often associated with the occurrence of gold.

Formula

A concise way of expressing information symbolically, as in a mathematical or chemical formula representing the composition of substances.

FeAsS

Also known as Arsenopyrite, it is a mineral consisting of iron, arsenic, and sulfur.