Al's production function for deer is f(x1, x2) = (2x₁ + x₂) ^1/2, where x1 is the amount of plastic and x2 is the amount of wood used.If the cost of plastic is $6 per unit and the cost of wood is $1 per unit, then the cost of producing 5 deer is

A) $25.
B) $65.
C) $75.
D) $5.
E) $15.

Question

Yasmine Boston · Accepted Answer

Final Answer : A, Explanation :  The cost of producing 5 deer is the cost of the plastic and wood used to produce them. The cost of the plastic is $6 per unit, and the cost of the wood is $1 per unit. The production function for deer is f(x1, x2)= (2x 1  + x 2 ) 1/2 , where x1 is the amount of plastic and x2 is the amount of wood used. To produce 5 deer, we need to find the values of x1 and x2 that satisfy the equation f(x1, x2)= 5. We can do this by solving the equation for x2:x2 = 25 - 2x1We can then substitute this value of x2 into the production function to find the value of x1:x1 = (25 - x2)/2We can now use these values of x1 and x2 to find the cost of producing 5 deer:Cost = 6x1 + 1x2 = 6((25 - x2)/2) + 1x2 = 75 - 3x2 + x2 = 75 - 2x2To find the value of x2 that minimizes the cost, we can take the derivative of the cost function with respect to x2 and set it equal to zero:dCost/dx2 = -2 = 0This implies that x2 = 1. Substituting this value of x2 back into the cost function, we get:Cost = 75 - 2x2 = 75 - 2(1) = 73Therefore, the cost of producing 5 deer is $73.

Al's production function for deer is f(x1, x2) = (2x₁ + x₂) ^1/2, where x1 is the amount of plastic and x2 is the amount of wood used.If the cost of plastic is $6 per unit and the cost of wood is $1 per unit, then the cost of producing 5 deer is

A) $25.
B) $65.
C) $75.
D) $5.
E) $15.

Definitions

Learning Objectives

Learning Objectives

Related questions

Al's production function for deer is f(x1, x2) = (2x1 + x2) 1/2, where x1 is the amount of plastic and x2 is the amount of wood used.If the cost of plastic is $6 per unit and the cost of wood is $1 per unit, then the cost of producing 5 deer isA) $25.B) $65.C) $75.D) $5.E) $15.

Definitions

Learning Objectives

Learning Objectives

Related questions

Al's production function for deer is f(x1, x2) = (2x₁ + x₂) ^1/2, where x1 is the amount of plastic and x2 is the amount of wood used.If the cost of plastic is $6 per unit and the cost of wood is $1 per unit, then the cost of producing 5 deer is

A) $25.
B) $65.
C) $75.
D) $5.
E) $15.