The prices of input (x1,X2,X3,X4) are (4, 1, 3, 2) a. If the production function is given by f(x1,x2) = min{x1,x2}, what is the minimum cost of producing one unit of output? b. If the production function is given by f(x1,x2) = x3 + X4, what is the minimum cost of producing one unit of output?

The prices of input (x1,X2,X3,X4) are (4, 1, 3, 2) a. If the production function is given by f(x1,x2) = min{x1,x2}, what is the minimum cost of producing one unit of output? b. If the production function is given by f(x1,x2) = x3 + X4, what is the minimum cost of producing one unit of output?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.3IP

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The prices of input (x1, X2, X3, X4) are (4, 1, 3, 2)
a. If the production function is given by f (x1,x2) = min{x1,x2}, what is the minimum cost of
producing one unit of output?
b. If the production function is given by f(x1,x2) = x3 + X4, what is the minimum cost of
producing one unit of output?

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