Suppose That the Production Function Is F (X1, X2)= (Min{x1

Multiple Choice

Suppose that the production function is f (x1, x2) = (min{x1, 2x2}) .5.

A) There are constant returns to scale.
B) The cost function is a min function.
C) If the price of x₁ is more than twice the price of x₂, only x₂ is used in production.
D) A cost-minimizing firm producing 5 units of output will use 25 units of x₁ and some x₂.
E) The cost function is a linear function of output.