An Orange Grower Has Discovered a Process for Producing Oranges

Question 25
Multiple Choice

An orange grower has discovered a process for producing oranges that requires two inputs. The production function is Q = min{2x1, x2}, where x1 andx2 are the amounts of inputs 1 and 2 that he uses. The prices of these two inputs are w1 = $5 and w2 = $2,respectively. The minimum cost of producing 140 units is therefore A) $980. B) $630. C) $1,400. D) $280. E) $700.