A firm has the production function y = min{x1, x2} + min{x3, x4}. This firm faces competitive factor markets where the prices fo
r the four factors are w1 = $4, w2 = $8, w3 = $5, and w4 = $3. The firm must use at least 20 units of factor 2. What is the minimum cost of producing 100 units of output?
1 answer:
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Answer:
The answer is "1.1"
Explanation:
In the case of a single Interest, the principal value is determined as follows:
In case of discount:
Let income amount = 100, time = 1.5 years, and rate =20 %.
Formula:
A = P(1+rt)
A =P+I
by putting vale in the above formula we get the value that is = 76.92, thus method A will give 76.92 value.
If we calculate discount then the formula is:
P = M(1-rt)
M = 100 rate and time is same as above.
Thus Method B will give the value that is 70
calculating ratio value: