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A competitive firm produces a product using the function f(x1,x2)=8x1/21x1/22f(x1,x2)=8x11/2x21/2. The factor prices are p1=$2.50p1=$2.50 and p2=$4p2=$4 and the firm can purchase as much of either factor at the given prices.  What is the firm's marginal cost? a. None of the above b. ≈$1.07 c. ≈$2.32 d. ≈$1.7

A competitive firm produces a product using the function f(x1,x2)=8x1/21x1/22f(x1,x2)=8x11/2x21/2. The factor prices are p1=$2.50p1=$2.50 and p2=$4p2=$4 and the firm can purchase as much of either factor at the given prices.  What is the firm's marginal cost? a. None of the above b. ≈$1.07 c. ≈$2.32 d. ≈$1.7

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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A competitive firm produces a product using the function f(x1,x2)=8x1/21x1/22f(x1,x2)=8x11/2x21/2. The factor prices are p1=$2.50p1=$2.50 and p2=$4p2=$4 and the firm can purchase as much of either factor at the given prices. 

What is the firm's marginal cost?

a.

None of the above

b.

≈$1.07

c.

≈$2.32

d.

≈$1.74

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