A competitive firm has the three-factor production function f (x, y, z)= (x + y)^1/2z ^1/2.The factor prices used to be wx = $1, wy = $2, and wz = $3.Suppose that the price of factor y doubled while the other two prices stayed the same.Then the cost of production A)increased by more than 10% but less than 50%. B)increased by 50%. C)doubled. D)stayed the same. E)increased by more than 50% but did not double.

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The Answer of A competitive firm has the three-factor production function f (x, y, z)= (x + y)^1/2z ^1/2.The factor prices used to be wx = $1, wy = $2, and wz = $3.Suppose that the price of factor y doubled while the other two prices stayed the same.Then the cost of production A)increased by more than 10% but less than 50%. B)increased by 50%. C)doubled. D)stayed the same. E)increased by more than 50% but did not double.

A Competitive Firm Has the Three-Factor Production Function F (X