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An Orange Grower Has Discovered a Process for Producing Oranges

Question 71

Multiple Choice

An orange grower has discovered a process for producing oranges that requires two inputs.The production function is Q =min{2x1, x2}, where x1 and x2 are the amounts of inputs 1 and 2 that he uses.The prices of these two inputs are w1 =$5 and w2 = $10, respectively.The minimum cost of producing 160 units is therefore


A) $2,000.
B) $2,400.
C) $800.
D) $8,000.
E) $1,600.

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