Multiple Choice
A competitive firm uses two inputs and has a production function f(x1, x2) = 39x.25 1x.25 2.The firm can buy as much of either factor as it likes at factor prices w1 = w2 = $1.The cost of producing y units of output for this firm is
A) 2(y/39) 2.
B) 39(x1 + x2) y.
C) (x1 +x2) /39.
D) y/78.
E) y2/78.
Correct Answer:
Verified
Correct Answer:
Verified
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