Multiple Choice
A competitive firm uses two variable factors to produce its output, with a production function q = min{x1, x2}.The price of factor 1 is $8 and the price of factor 2 is $5.Due to a lack of warehouse space, the company cannot use more than 10 units of x1.The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output.What is the smallest integer price that would make a firm willing to produce a positive amount?
A) $44
B) $41
C) $29
D) $13
E) $21
Correct Answer:
Verified
Correct Answer:
Verified
Q36: A competitive firm uses two inputs and
Q37: A competitive firm has a single factory
Q38: A firm's production function is f(x1, x2)=
Q39: A competitive firm produces its output according
Q40: The area under the marginal cost curve
Q41: The change in producer's surplus when the
Q42: Average fixed costs never increase with output.
Q43: A competitive firm has a continuous marginal
Q44: Irma's production function is f(x1, x2)=(min{x<sub>1</sub>, 3x<sub>2</sub>})<sup>1/2</sup>.If
Q45: A firm with the cost function c(y)=