An Orange Grower Has Discovered a Process for Producing Oranges

An orange grower has discovered a process for producing oranges that requires two inputs. The production function is Q = min{2x1, x2}, where x1 andx2 are the amounts of inputs 1 and 2 that he uses. The prices of these two inputs are w1 = $5 and w2 = $2,respectively. The minimum cost of producing 140 units is therefore

A) $980.
B) $630.
C) $1,400.
D) $280.
E) $700.

Correct Answer:

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