A Firm's Production Function Is F(x1, X2)= (Min{x₁, 3x₂})^1/2

question 38

Multiple Choice

A firm's production function is f(x1, x2) = (min{x₁, 3x₂}) ^1/2.If the price of factor 1 is w1 = $6 per unit and the price of factor 2 is w2 = $6 per unit, then its supply function is given by the equation S(p) =

• A)max{w1, 3w2}p.
• B)min{w1, 3w2}p
• C)8p.
• D)p/16.
• E)min{6p, 18p}p.

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Definitions:

Improbable Events

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Confirmation Bias

The proclivity to pursue, decode, cherish, and memorize information that reinforces one's preconceived beliefs or assumptions.

Misdiagnosis

The act of incorrectly identifying a disease or condition, leading to potential delay in appropriate treatment or unnecessary anxiety.

Belief Perseverance

The tendency to maintain one's belief even after it has been discredited or proven wrong.