Suppose That a Particular Good, Y, Is Produced According to the Following

Multiple Choice

Suppose that a particular good, y, is produced according to the following production function y = min(ax₁,bx₂) where x₁ and x₂ are inputs, and a and b are positive constants. Suppose further that x₁/x₂ currently equals b/a. Then:

A) an additional unit of x₁ or x₂ will not increase output.
B) the current ratio of input- usage is technically inefficient.
C) if a > b, the production of any output level requires more x₁ than x₂.
D) an additional unit of x₁ will increase output.