If the Production Function Is Given by F (X1,x2, X3

question 42

Multiple Choice

If the production function is given by f (x1,x2, x3, x4) = min{x1, x2} + min{x3, x4} and the prices of inputs (x1,x2, x3, x4) are (2, 1, 5, 3) , the minimum cost of producing 1 unit of output is closest to

• A)$1.
• B)$3.
• C)$4.
• D)$8.
• E)$11.

---

Definitions:

Poisson Distribution

A numerical distribution detailing the probability of specific event counts happening over a determined timeframe or spatial range.

Negative Exponential Distribution

A probability distribution used to model the time between events in a Poisson process, representing the decay of quantities.

Average Arrival Rate

A metric used in queueing theory indicating the average number of entities (people, items, etc.) arriving at a system or service point per unit of time.

Average Service Rate

The average rate at which a service process can complete work or tasks, often measured over a specific period.