A competitive firm uses two variable factors to produce its output, with a production function q = min {x,y}. The price factor x is $8 and the price of factor y is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x. In addition to the costs of inputs, the firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?

A competitive firm uses two variable factors to produce its output, with a production function q = min {x,y}. The price factor x is $8 and the price of factor y is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x. In addition to the costs of inputs, the firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?

A competitive firm uses two variable factors to produce its output, with a production function q = min {x,y}. The price factor x is $8 and the price of factor y is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x. In addition to the costs of inputs, the firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?



Answer: $21.