If the production function is f(z₁,z₂)= min(z₁,z₂)and if the price of z₁is $20 and the price of z₂is $15, then the minimum cost of producing 10 units of output is: A)$350. B)$150. C)$200. D)$175.

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Quizplus · Accepted Answer

The minimum cost of producing 10 units of output is $150. This is because the production function is f(z₁,z₂)= min(z₁,z₂), which means that the minimum amount of each input required to produce 10 units of output is 10. The price of z₁ is $20 and the price of z₂ is $15, so the minimum cost of producing 10 units of output is 10 x $15 = $150.

If the Production Function Is F(z1,z2)= Min(z1,z2)and If the Price

If the Production Function Is F(z₁,z₂)= Min(z₁,z₂)and If the Price