An orange grower has discovered a process for producing oranges that requires two inputs.The production function is Q =min{2x1, x2}, where x1 and x2 are the amounts of inputs 1 and 2 that he uses.The prices of these two inputs are w1 =$5 and w2 = $10, respectively.The minimum cost of producing 160 units is therefore

A) $2,000.
B) $2,400.
C) $800.
D) $8,000.
E) $1,600.

Production Function

A mathematical model that describes the relationship between the inputs used in production and the output of goods or services.

Inputs

Resources, such as labor, materials, and capital, that are used in the production process to create goods and services.

Minimum Cost

The lowest possible cost at which a particular set of goods or services can be produced or acquired without sacrificing quality or quantity.