A firm’s production function isf(x1, x2) =x1 + 2x2. This means thatx2 is twice as expensive asx1.true or false?

Answers

Answer 1
Answer:

The given statement "The firm’s production function is given as (x1, x2) = x1 + 2x2" is true.This implies that the cost of producing x2 is twice the cost of producing x1.

The given production function of the firm:f(x1, x2) = x1 + 2x2shows the output that the firm can produce by using the two input factors x1 and x2.

To determine if x2 is twice as expensive as x1, we need to compare the costs of producing these two inputs. Since the production function does not give the actual cost of production, we need to use the concept of marginal cost. The marginal cost of an input is the additional cost incurred by the firm when it increases the input by one unit.

Mathematically, marginal cost = ∂C/∂XiHere, Xi represents the input factor and C represents the total cost of production. Now, let us find the marginal cost of x1 and x2.Marginal cost of x1 = ∂C/∂x1= ∂(x1 + 2x2)/∂x1= 1Marginal cost of x2 = ∂C/∂x2= ∂(x1 + 2x2)/∂x2= 2Therefore, the cost of producing x2 is twice the cost of producing x1. Hence, the given statement is true.

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Answer:

d The scientist should revise the question to address a gap in knowledge.

Explanation:

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Answers

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Answer:

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Explanation:

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