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2) The production function of a factory has the following characteristics: • Use workers (x1) and machines (x2). • It is not capable of producing if it does not contract one of the two factors of production, even if you hire the other. • You can increase production a given percentage, hiring the percentage more workers without hiring more machines. • When you hire 1 worker and 1 machine, you can produce 8 per day. Which of the following production functions are consistent with the above and why? 1/21/2 a. y = 8x;"x2 v8 b. y = xx2 c. y = min{8x,1,8x2} d. y = min{x, x} %3D

2) The production function of a factory has the following characteristics: • Use workers (x1) and machines (x2). • It is not capable of producing if it does not contract one of the two factors of production, even if you hire the other. • You can increase production a given percentage, hiring the percentage more workers without hiring more machines. • When you hire 1 worker and 1 machine, you can produce 8 per day. Which of the following production functions are consistent with the above and why? 1/21/2 a. y = 8x;"x2 v8 b. y = xx2 c. y = min{8x,1,8x2} d. y = min{x, x} %3D

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.2P
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2) The production function of a factory has the following characteristics: • Use workers (x1) and machines (x2). • It is not capable of producing if it does not contract one of the two factors of production, even if you hire the other. • You can increase production a given percentage, hiring the percentage more workers without hiring more machines. • When you hire 1 worker and 1 machine, you can produce 8 per day. Which of the following production functions are consistent with the above and why? 1/21/2 a. y = 8x;'"x2" b. y = xx2 %3D 8 c. y = min{8x1,8x2} d. y = min{x, x} %3D
Transcribed Image Text:2) The production function of a factory has the following characteristics: • Use workers (x1) and machines (x2). • It is not capable of producing if it does not contract one of the two factors of production, even if you hire the other. • You can increase production a given percentage, hiring the percentage more workers without hiring more machines. • When you hire 1 worker and 1 machine, you can produce 8 per day. Which of the following production functions are consistent with the above and why? 1/21/2 a. y = 8x;'"x2" b. y = xx2 %3D 8 c. y = min{8x1,8x2} d. y = min{x, x} %3D
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