Suppose the production function for coffee (C) is C = min(B,W), where B = beans in pounds and W = water in gallons. Suppose the price of water is .10 per gallon and the price of beans is 10 per pound. The expansion path is
a. B = 10W
b. B = .1W
c. B = W
d. 10 = B + W
Question 2
Suppose the production function for coffee (C) is C = min(B,W), where B = beans in pounds and W = water in gallons. Suppose the price of water is .10 per gallon and the price of beans is 10 per pound. The cost minimizing combination of beans and water for C = 200 is
a. B = 200, W = 2000
b. B = 2000, W = 200
c. B = 100, W = 100
d. B = 200, W = 200
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