A firm has a production function y min 2x 1 , 3x 2 where x 1 and x 2 are the amounts of the two inputs Suppose the price of x 1 is $10 and the price of x 2 is $15 If the firm uses 3 units of input x 1 and 3 units of input x 2 , how much output can the firm produce at most (1pts) Sketch the isoquant curve that represents output level y 12 (1 pts) Sketch a few isocost lines Together with the isoquant curve in (b), illustrate where the cost minimizing input bundle should be if the firm wants to produce 12 units of output (1pts) If the firm wants to produce 12 units of output, how much of each input must the firm use at the minimum (2pts) If the firm wants to produce 12 units of output, how much is the (minimum) cost that the firm must pay (1pts)

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Question: A firm has a production function y = min{2x 1 , 3x 2 } where x 1 and x 2 are the amounts of the

A firm has a production function y = min{2x₁, 3x₂} where x₁ and x₂ are the amounts of the two inputs. Suppose the price of x₁ is $10 and the price of x₂ is $15.

If the firm uses 3 units of input x₁ and 3 units of input x₂, how much output can the firm produce at most? (1pts)
Sketch the isoquant curve that represents output level y =12. (1 pts)
Sketch a few isocost lines. Together with the isoquant curve in (b), illustrate where the cost-minimizing input bundle should be if the firm wants to produce 12 units of output. (1pts)
If the firm wants to produce 12 units of output, how much of each input must the firm use at the minimum? (2pts)
If the firm wants to produce 12 units of output, how much is the (minimum) cost that the firm must pay? (1pts)

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