Illustrate the smallest integer price

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Reference no: EM1361166

A competitive rm uses two variable factors to produce its output, with a production function y = minfx1; x2g. The price of factor 1 is $8 and the price of factor 2 is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x1. The rm must pay a xed cost of $80 if it produces any positive amount, but does not have to pay this cost if it produces no output. What is the smallest integer price that
would make a rm willing to produce a positive amount?

Reference no: EM1361166

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