A firm uses 3 factors to produce its output. Its production function is f(x, y, z) = min{ , y², }. If the amount of each input is multiplied by 2, its output will be multiplied by A)27 B)4 C)8 D) 0.40. E) The answer depends on the original choice of x, y, and z.

Question

Quizplus · Accepted Answer

The Answer of A firm uses 3 factors to produce its output. Its production function is f(x, y, z) = min{ , y², }. If the amount of each input is multiplied by 2, its output will be multiplied by A)27 B)4 C)8 D) 0.40. E) The answer depends on the original choice of x, y, and z.

A Firm Uses 3 Factors to Produce Its Output