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.
Correct Answer:

Verified
Correct Answer:
Verified
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