2) The production function of a factory has the following characteristics: • Use workers (x1) and machines (x2). • It is not capable of producing if it does not contract one of the two factors of production, even if you hire the other. • You can increase production a given percentage, hiring the percentage more workers without hiring more machines. • When you hire 1 worker and 1 machine, you can produce 8 per day. Which of the following production functions are consistent with the above and why? 1/21/2 a. y = 8x;"x2 v8 b. y = xx2 c. y = min{8x,1,8x2} d. y = min{x, x} %3D
2) The production function of a factory has the following characteristics: • Use workers (x1) and machines (x2). • It is not capable of producing if it does not contract one of the two factors of production, even if you hire the other. • You can increase production a given percentage, hiring the percentage more workers without hiring more machines. • When you hire 1 worker and 1 machine, you can produce 8 per day. Which of the following production functions are consistent with the above and why? 1/21/2 a. y = 8x;"x2 v8 b. y = xx2 c. y = min{8x,1,8x2} d. y = min{x, x} %3D
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.2P
Related questions
Question
![2)
The production function of a factory has the following characteristics:
• Use workers (x1) and machines (x2).
• It is not capable of producing if it does not contract one of the two factors of production,
even if you hire the other.
• You can increase production a given percentage, hiring the percentage
more workers without hiring more machines.
• When you hire 1 worker and 1 machine, you can produce 8 per day.
Which of the following production functions are consistent with the above and why?
1/21/2
a. y = 8x;'"x2"
b. y = xx2
%3D
8
c. y = min{8x1,8x2}
d. y = min{x, x}
%3D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a6da956-2755-4762-ab7e-fe87f0a2acdd%2F3a13dace-6720-40ae-8ec1-7adf036625b0%2Fm5k01s1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2)
The production function of a factory has the following characteristics:
• Use workers (x1) and machines (x2).
• It is not capable of producing if it does not contract one of the two factors of production,
even if you hire the other.
• You can increase production a given percentage, hiring the percentage
more workers without hiring more machines.
• When you hire 1 worker and 1 machine, you can produce 8 per day.
Which of the following production functions are consistent with the above and why?
1/21/2
a. y = 8x;'"x2"
b. y = xx2
%3D
8
c. y = min{8x1,8x2}
d. y = min{x, x}
%3D
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