What are the input levels for both x1 and x2 in order to


An orange grower has discovered a process for producing oranges that requires two inputs. The produciton function is y = min{2x1 , x2 }, where x1 and x2 are the amounts of inputs 1 and 2 that he uses. The prices of these two inputs are w1 = $5 and w2 = $2, respectively.

(a) What are the input levels for both x1 and x2 in order to minimize the cost for the orange grower

Solution Preview :

Prepared by a verified Expert
Business Economics: What are the input levels for both x1 and x2 in order to
Reference No:- TGS01383720

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)