Question
A firm has the production function f (x1, x2) = x1 + (x2)^2. The input prices are p1 = p2 = 1. Let C(q) denote
A firm has the production function f (x1, x2) = x1 + (x2)^2. The input prices are p1 = p2 = 1. Let C(q) denote the firm's cost function. Then the following holds. (a) C(q)=q for all q>1 (b) C(q)=q for all q<1 (c) c(q)=q^2 for all q>1 (d) C(q)=q^2 for all q<1 (e) None of the other answers is correct. Why is a) the correct answer?
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Microeconomics A Contemporary Introduction
Authors: William A. McEachern
9th edition
978-0538453714, 538453710, 978-1111415921
