A firm's production function is f(x₁, x₂) = (min{x₁,5x2})¹/². If the price ofthe first factor is w₁= 20, then the=5 and the price of the second factor is w2supply function is given byy = 9py = min{5p, 8p}y=p/18Oy=pmax{w₁, 5w₂}²y = p min{w₁, 5w₂}²

Production function is the functional relationship between the output and inputs. The both inputs…

A firm's production function is f(x₁, x₂) = (min{x₁,5x₂ })¹/2. If the price of the first factor is w₁ = 5 and the price of the second factor is w2 = 20, then the supply function is given by y = 9p y = min{5p, 8p} y=p/18 hau 12

A firm's production function is f(x₁, x₂) = (min{x₁,5x₂ })¹/2. If the price of the first factor is w₁ = 5 and the price of the second factor is w2 = 20, then the supply function is given by y = 9p y = min{5p, 8p} y=p/18 hau 12

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm's production function is f(x₁, x₂) = (min{x₁,5x2})¹/². If the price of
the first factor is w₁
= 20, then the
=
5 and the price of the second factor is w2
supply function is given by
y = 9p
y = min{5p, 8p}
y=p/18
Oy=pmax{w₁, 5w₂}²
y = p min{w₁, 5w₂}²

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