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A Firm's Production Function Is Q = 26x0

Question 17

Multiple Choice

A firm's production function is q = 26x0.33y0.67, where x and y are the amounts of factors x and y that the firm uses as inputs.If the firm is minimizing unit costs and if the price of factor x is 6 times the price of factor y,the ratio in which the firm will use factors x and y is closest to


A) x/y = 0.08.
B) x/y = 0.25.
C) x/y = 0.50.
D) x/y = 2.40.
E) x/y = 12.

Correct Answer:

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