A firm uses 3 factors of production. Its production function is f(x, y, z) = min{ }. If the amount of each input is multiplied by 2, its output will be multiplied by
A)8.
B) 4.
C) 16.
D) 0.22.
E) The answer depends on the original choice of x, y, and z.

Question

A firm uses 3 factors of production. Its production function is f(x, y, z) = min{  }. If the amount of each input is multiplied by 2, its output will be multiplied by 
A)8. 
B) 4. 
C) 16. 
D) 0.22. 
E) The answer depends on the original choice of x, y, and z.

Quizplus · Accepted Answer

The Answer is A

A Firm Uses 3 Factors of Production