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A mail-marketing company combines two inputs, pre-stamped envelopes (input 1) and printed marketing campaign material (input 2). Every envelope can be stuffed with three pieces
A mail-marketing company combines two inputs, pre-stamped envelopes (input 1) and printed marketing campaign material (input 2). Every envelope can be stuffed with three pieces of paper. That is, the number of marketing mailers is determined by the following production function: y=min{x1,x23} , where y stands for the number of mailers, x1 stands for the number of pre-stamped envelopes, and x2 stands for the number of sheets of paper. Considering your findings from Part 1, which of the following statements are true? Choose one or more: A. The cost function depends negatively on the per-unit cost of printed sheets of mailer material (2 ). B. The cost function depends positively on the per-unit cost of printed sheets of mailer material (2 ). C. The cost function depends positively on the number of mailers (y ) the firm wants to produce. D. The cost function depends negatively on the per-unit cost of envelopes (1 ). E. The cost function is independent of the price the firm charges for producing each mailer (the price of y ). F. The cost function depends positively on the per-unit cost of envelopes (1 )
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