A Firm Has Production Function F (X1, X2, X3, X4)

A firm has production function f (x1, x2, x3, x4) =min{x1, x2} + min{x3, x4}. This firm faces competitive factor markets where the prices for the four factors arew1 = $7, w2 = $8, w3 = $6, and w4 = $5. The firm must use at least 20 units of factor 2. The cost of producing 100 units in the cheapest possible way is

A) $1,400.
B) $1,200.
C) $1,340.
D) $1,180.
E) $500.

Correct Answer:

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