A competitive, cost-minimizing firm has the production function f (x, y)= x + 2y and uses positive amounts of both inputs.If the price of x doubles and the price of y triples, then the cost of production will more than double.

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Hasii udhara · Accepted Answer

Final Answer : False, Explanation :  The cost of production will not more than double because the production function is linear, and the increase in input prices will result in a proportional increase in costs, not more than double.

A competitive, cost-minimizing firm has the production function f (x, y)= x + 2y and uses positive amounts of both inputs.If the price of x doubles and the price of y triples, then the cost of production will more than double.

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