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

question 52

Multiple Choice

A firm has production function f (x1, x2, x3, x4) = min{x1, x2} + min{x3, x4}.This firm faces competitive factor markets where the prices for the four factors are w1 = $7, w2 = $8, w3 = $6, and w4 = $5.The firm must use at least 20 units of factor 2.The cost of producing 100 units in the cheapest possible way is

• A)$1,400.
• B)$1,200.
• C)$1,340.
• D)$1,180.
• E)$500.

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