Re: Doubts

Posted by Rautparul on Jan 29, 2017; 4:49pm
URL: http://discussion-forum.276.s1.nabble.com/Doubts-tp7603095p7603127.html

Hello folks,  can anyone help out with this one?

Douelberry juice is a mild intoxicant, prized for facilitating conversation among university
administrators, but not otherwise valued. The berry does not travel well, so it must be squeezed on
the farm where it is grown. Baskets of berries are produced using ounces of seeds, S; and hours la-
bor, L; according to a production function B = S1/2L1/2. Gallons of Juice, J; are made from baskets
of berries and hours of labor according to the production function J = min(B;L). If seeds cost 9
per ounce and labor costs 1 per hour, what is the cost of producing each gallon of douelberry juice?
(a) 14
(b) 6
(c) 3
(d) 7
(e) Since there are not constant returns to scale, the cost per gallon depends on the number of gallons
produced.

The answer is d but I am getting c.

I tried solving.. attaching file.. can anybody point out where is it wrong?