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The Production Function Is F(x1, X2)=x1/21x1/22

question 8

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The production function is f(x1, x2) =x1/21x1/22.If the price of factor 1 is $6 and the price of factor 2 is $12, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

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Definitions:

Leader and Follower Interaction

The dynamic relationship between those who guide or influence others and those who are guided or influenced within an organizational or social context.

Substitutes for Leadership

Factors in the workplace environment that diminish the importance of leadership, such as structured tasks or intrinsic motivated teams.

Clarity of Organizational Plans

The clear and understandable presentation of strategies and objectives by an organization.

Availability of Performance Feedback

The extent to which individuals can obtain information about the quality and effectiveness of their work performance.

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