The prices of inputs x1; x2; x3; x4 are p1 = 2; p2 = 2; p3 = 5; and p4 = 2. If the production function is given by f(x1, x2, x3, x4) = min{x1, x2} + min{x3, x4}, what is the minimum cost of producing one unit of output?

The prices of inputs x1; x2; x3; x4 are p1 = 2; p2 = 2; p3 = 5; and p4 = 2. If the production function is given by f(x1, x2, x3, x4) = min{x1, x2} + min{x3, x4}, what is the minimum cost of producing one unit of output?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 17QP

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Question

The prices of inputs x₁; x₂; x₃; x₄ are p₁ = 2; p₂ = 2; p₃ = 5; and p₄ = 2.

If the production function is given by f(x₁, x₂, x₃, x₄) = min{x₁, x₂} + min{x₃, x₄}, what is the minimum cost of producing one unit of output?.

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