An Orange Grower Has Discovered a Process for Producing Oranges

question 71

Multiple Choice

An orange grower has discovered a process for producing oranges that requires two inputs.The production function is Q =min{2x1, x2}, where x1 and x2 are the amounts of inputs 1 and 2 that he uses.The prices of these two inputs are w1 =$5 and w2 = $10, respectively.The minimum cost of producing 160 units is therefore

• A)$2,000.
• B)$2,400.
• C)$800.
• D)$8,000.
• E)$1,600.

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