A Firm's Production Function Is F(x1, X2)= (Min{x₁, 4x₂})^1/2

question 12

Multiple Choice

A firm's production function is f(x1, x2) = (min{x₁, 4x₂}) ^1/2.If the price of factor 1 is w1 = $5 per unit and the price of factor 2 is w2 = $8 per unit, then its supply function is given by the equation S(p) =

• A)7p.
• B)p/14
• C)min{w1, 4w2}p.
• D)max{w1, 4w2}p.
• E)min{5p, 32p}p.

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Definitions:

Point

A precise location or position in a geometric space, not having any dimension.

Equation

A mathematical statement that asserts the equality of two expressions, signified by the symbol =.

Center

In geometry, the midpoint or origin point of a shape or object, often relevant in circles, ellipses, and other symmetrical shapes.

Center

The point that is equally distant from all points on the circumference of a circle or sphere.