Irma's production function is f(x1, x2) = (min{x1, 5x2}) 1/2.If the price of factor 1 is w1 = $5 and the price of factor 2 is w2 = $20, then her supply function is given by the equation
A) S(p) = p/18.
B) S(p) =p(max{w1, 5w2}) 2.
C) S(p) =p(min{w1, 5w2}) 2.
D) S(p) = 9p.
E) S(p) =min{5p, 100p}.
Correct Answer:
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