A firm has the production function $f(x₁, x₂)=x^2.50₁x^0.50₂.The isoquant on which output is 50^5/10 has the equation A)x₂ =50x^-⁵₁. B)x₂ =50x²₁. C)x₁/x₂ = 5. D)x₂ = 50x^-^0.50₁. E)x₁ =0.50x^-^0.50₂.

Question

Quizplus · Accepted Answer

The isoquant equation is found by setting the production function equal to the desired output level and solving for x₂ in terms of x₁. In this case, we have:50^5/10 = x^2.50₁x^0.50₂50 = x^2.50₁x^0.50₂x₂ = 50x^-⁵₁

A Firm Has the Production Function $F(x1, X2)=x2

A Firm Has the Production Function $F(x₁, X₂)=x²