Question 10 (1 point)
A competitive firm
uses three factors of production. Its production
function is $f(x, y, z) = (x + y)^{1/2}z^{1/2}$. Originally
the factor prices were $w_x = $1$, $w_y = $2$, and $w_z$
$= $3$. The prices of factors $x$ and $z$ decreased to
half of their previous levels, but the price of
factor $y$ stayed constant. The cost of production