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The Ontario Brassworks produces brazen trumpets. As you know brass is an alloy of copper and zinc, used in fixed proportions. The production function is
The Ontario Brassworks produces brazen trumpets. As you know brass is an alloy of copper and zinc, used in fixed proportions. The production function is given by: f(x1, x2) = min{x1, 2x2}, where x1is
the amount of copper it uses and x2is the amount of zinc that it uses in production.
- If the firm faces input prices (1,1), what is the cheapest way for it to produce 10 trumpets?
- How much will this cost?
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