A Competitive Firm Produces Its Output According to the Production

question 25

Multiple Choice

A competitive firm produces its output according to the production function y = min{x^1/2, 10}.Let w be the price of the factor x, and let the price of output be $1.The demand for factor x, when the factor price is w, is

• A)x =min{w^1/2, 10}
• B)x = max{w^1/2/2, 100}.
• C)x =min{1/4w², 100}.
• D)x = 10 + x^1/2/2.
• E)None of the above.

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