Answered
A firm has production function f (x1, x2, x3, x4) minx1, x2 minx3, x4.This firm faces competitive factor markets where the prices for the four factors are w1 $4, w2 $8, w3 $5, and w4 $3.The firm must use at least 20 units of factor 2.The cost of producing 100 units in the cheapest possible way is
A) $700.
B) $1,040.
C) $880.
D) $1,300.
E) $300.
On Jun 22, 2024