Question: 20.3 The production function is f(x1, x2) = x x, . If the price of factor 1 is 8 and the price of factor 2

20.3 The production function is f(x1, x2) = x x, .

20.3 The production function is f(x1, x2) = x x, . If the price of factor 1 is 8 and the price of factor 2 is 16, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits? (See Prob 20.7) (a) 21 = 202. (b) 21 = 0.502. (c) 21 = 202 (d) We can't tell without knowing the price of output

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