A firm has a production function . If the minimum cost of production for any level of output y, at is equal to 4, what is y equal to?
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1 mark, −0.33MicroeconomicsCosts of productionCost minimisation and long-run input choiceHardabout 2 min
UoH 2018 Question 29: Costs of production
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Plain-text version
A firm has a production function y = x₁ x₂. If the minimum cost of production for any level of output y, at P₁ = P₂ = 1 is equal to 4, what is y equal to? (A) 0 (B) 2 (C) 4 (D) 8
Also written as: A firm has a production function y = x_1 x_2. If the minimum cost of production for any level of output y, at P_1 = P_2 = 1 is equal to 4, what is y equal to?
Costs of production has come up 83 times in 7 exams since 2006.
What this question tests
This question is on Cost minimisation and long-run input choice, part of Costs of production in Microeconomics.
Choosing inputs to produce a given output at least cost, including across several plants.
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Question from the UoH 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.