The Production Function Is F(x 1 , X 2 )=x 1/2 1 x 1/2 2

The Answer of The Production Function Is F(x 1 , X 2 )=x 1/2 1 x 1/2 2

The Production Function Is F(x 1 , X 2 )=x 1/2 1 x 1/2 2

The Answer of The Production Function Is F(x 1 , X 2 )=x 1/2 1 x 1/2 2

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The Production Function Is F(x₁, X₂)=x^1/2₁x^1/2₂

Question 8

Multiple Choice

The production function is f(x₁, x₂) =x^1/2₁x^1/2₂.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?

A) x₁ =12x₂.
B) x₁ =0.50x₂.
C) x₁ =2x₂.
D) x₁ = x₂.
E) We can't tell without knowing the price of the output.

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

Multiple Choice

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The Production Function Is F(x₁, X₂)=x^1/2₁x^1/2₂

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