A Factory Produces Product a According to the Production Function

question 30

Multiple Choice

A factory produces product A according to the production function QA = 100XA,where XA denotes the amount of input and QA is the quantity produced.It also produces product B according to the production function QB = 200XB + XB2,where XB denotes the amount of input and QB is the quantity produced.The total available amount of input X is 100 units.The firm's profit-maximizing allocation of input X is _____.

• A)X_A = 60 and X_B = 40
• B)X_A = 50 and X_B = 50
• C)X_A = 0 and X_B = 100
• D)X_A = 100 and X_B = 0
• E)X_A = 45 and X_B = 55

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Definitions:

Questionnaire

A set of questions designed for gathering information from respondents for research purposes.

Z-score

A calculation that determines how a particular value's distance from the mean of a set of values is expressed in standard deviations.

Outlier

An observation in data that is significantly different from the majority of the data, potentially due to variability in the measurement or an experimental error.

Median

The middle value in a data set, when the values are arranged in ascending or descending order, or the average of the two middle numbers when the dataset has an even number of observations.