In Problem 9, suppose that Irma's production function is f(x1, x2)
. If the price of factor 1 is w1 = $2 and the price of factor 2 is w2 = $6, then her supply function is given by the equation
A) S(p) = p(max{w1, 3w2} ) 2.
B) S(p) = 4p.
C) S(p) = p(min{w1, 3w2} ) 2.
D) S(p) =.
E) S(p) = min{ 2p, 18p}.
Correct Answer:
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