Al's Production Function for Deer Is F(x₁, X₂)= (2x₁

question 24

Multiple Choice

Al's production function for deer is f(x₁, x₂) = (2x₁ + x₂) ^1/2, where x₁ is the amount of plastic and x₂ is the amount of wood used.If the cost of plastic is $8 per unit and the cost of wood is $3 per unit, then the cost of producing 5 deer is

• A)$15.
• B)$100.
• C)$95.
• D)$75.
• E)$20.

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Definitions:

Semiannually

Occurring or happening twice a year; every six months.

Face Value

The nominal value printed on a bond or share, distinct from its market value.

Par Value

The face value of a bond or stock, representing the amount the issuer agrees to pay at maturity (for bonds) or as an arbitrary value assigned to shares.

Debt Relationship

The connection between borrowers and lenders, specifying the terms under which debt capital is lent and must be repaid.