Total production cost for the industry

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Suppose X and Y are substitutes and are both normal goods. Assume X in on the horizontal axis and Y is on the vertical axis, If the price of X increases, which of the following will NOT happens?

-The slope of the income offer curve will become flatter

-The slope of the income offer curve will become steeper

-The Engel Curve for X will become steeper/"shift" to the left

-The Engel Curve for Y will become flatter/"shift" to the right

An industry has 50 identical firms. These firms have the same production function, which is Y=3x1+x2. Each firm has $0 fixed cost. The cost of factor 1 is $4 and the cost of factor $2 is $1. Both factors are variable. If the firm acts optimally (aka cost minimized), The total production cost for the industry if each firm produces 15 units is:

-750

-1000

-3750

-Not enough information to determine

Reference no: EM132559544

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