Solved

Let the Production Be F(x,y)= X1/2y1/2

Question 61

Multiple Choice

Let the production be f(x,y) = x1/2y1/2. If the price of x is 8 and the price of y is 16, in what proportions should the firm use x and y if it wants to maximize profits?


A) x=y
B) x=2y
C) x=0.5y
D) Cannot tell without knowing the price of output.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q56: Self- interested commuters may choose a suboptimal

Q57: Suppose the production function for widgets is

Q58: A fixed- proportions production function is one

Q59: Capital inputs may cause confusion if they

Q60: If STC = 3q<sup>2 </sup>+ 7q, then:<br>A)VC

Q62: Figure 6A<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3559/.jpg" alt="Figure 6A

Q63: Advertising costs are:<br>A)avoidable and fixed.<br>B)fixed and sunk.<br>C)variable

Q64: Some commentators have suggested that the devastating

Q65: Let the production function be f(L)=6L<sup>2/3</sup>. Suppose

Q66: Economists might consider the cash for clunkers