Multiple Choice
The production function is f(x1, x2) = x1/21x1/22.If the price of factor 1 is $12 and the price of factor 2 is $24, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?
A) x1 = x2.
B) x1 = 0.50x2.
C) x1 = 2x2.
D) x1 =24x2.
E) We can't tell without knowing the price of the output.
Correct Answer:
Verified
Correct Answer:
Verified
Q31: Diesel Dan is a contract truck driver.While
Q32: Diesel Dan is a contract truck driver.While
Q33: When Farmer Hoglund applies N pounds of
Q34: Jiffy-Pol Consultants is paid $1,000,000 for each
Q35: A competitive firm's production function is f(x<sub>1</sub>,
Q37: If the short-run marginal costs of producing
Q38: If there is perfect certainty, a competitive
Q39: Philip owns and operates a gas station.Philip
Q40: A fixed factor is a factor of
Q41: If a profit-maximizing competitive firm has constant