This problem will be easier if you have done Problem 1. A firm has the production function $f(x₁, x₂) = x^2.50₁x^0.50₂. The isoquant on which output is has the equation A) x₂ = 50x^-⁵₁. B) x₂ = 50x²₁. C) = 5. D) x₂ = 50x^-^0.50_1. E) x₁ = 0.50x^-^0.50₂.

Question

Quizplus · Accepted Answer

The isoquant equation is obtained by setting the production function equal to constant output level of 11ea6c55_6e76_06be_9875_c7a7cef9901e_TB6162_11. Thus, we have: 11ea6c55_6e76_06be_9875_c7a7cef9901e_TB6162_11 = x^2.50₁x^0.50₂ Simplifying, we get: x₂ = (11ea6c55_6e76_06be_9875_c7a7cef9901e_TB6162_11) / (50x^-⁵₁) Therefore, the answer is choice A.

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