2. A competitive firm uses two variable factors to produce its output, with a production function qmin{x₁, x₂}. The price of factor 1 is $8 and the price of factor 2 is $5. Due to a lack ofwarehouse space, the company cannot use more than 10 units of x₁. The firm must pay a fixedcost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces nobutput. What is the smallest integer price that would make a firm willing to produce a positiveamount?b.d.$44$41$29$13$21

The link between the inputs and outputs is shown by the production function. In order to produce the…

Answered: butput. What is the smallest integer…

butput. What is the smallest integer price that would make a firm willing to produce a positive amount? a. b. C. d. e. no $44 $41 $29 $13 $21

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

2. A competitive firm uses two variable factors to produce its output, with a production function q
min{x₁, x₂}. The price of factor 1 is $8 and the price of factor 2 is $5. Due to a lack of
warehouse space, the company cannot use more than 10 units of x₁. The firm must pay a fixed
cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no
butput. What is the smallest integer price that would make a firm willing to produce a positive
amount?
b.
d.
$44
$41
$29
$13
$21

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