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Microeconomics

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Moderate

Lox and Bagels with Schmear

MICRO-XFAYLX

Goldie owns a deli where she makes lox and bagels with schmear. This product requires two inputs: lox and bagels $(L)$ and schmear $(S)$ (note that her inputs are {lox and bagels} and ${schmear}$ NOT ${lox} (L)$ and {bagels with schmear} (B)). Her production function of lox and bagels (L) and schmear (S) is $q(L,S) = \sqrt{L+S}$.

When she uses 20 lox and bagels and 16 schmears, her output exactly meets her demand; she doesn’t make too much, she doesn’t make too little, it’s just right. Goldie’s friend is starting a schmear business, so to support her friend, she decides to start using more schmear; she now uses 25 schmears.

How many lox and bagels does she use to produce the same amount of lox and bagels with schmear as before (not too much, not too little, but just right)?

A

$36$

B

$16$

C

$11$

D

$6$