Suppose a Firm Can Produce 70 Units of a Product

question 286

Multiple Choice

Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit. Refer to the provided table, and suppose that the firm uses production technique D. If each of the 70 units of Zenia that are produced sells for $1 apiece, then how much will be the total profits of the firm from 70 units of Zenia?

• A)$70
• B)$57
• C)$13
• D)$83

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Definitions:

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A low magnification microscope designed for viewing and manipulating large, detailed specimens, such as biological tissues during dissection.

Compound Light Microscope

An optical instrument used to magnify images of small objects, consisting of an eyepiece and an objective lens.

Crenate

Describes a type of cell or cell edge that is scalloped or notched, often as a result of a cell losing water in a hypertonic environment.