The Production Function for a Competitive Firm Is Q =

question 111

Multiple Choice

The production function for a competitive firm is Q = K^.5L^.5.The firm sells its output at a price of $10, and can hire labor at a wage of $5.Capital is fixed at one unit.The maximum profits are

• A)5.
• B)10.
• C)15.
• D)none of the statements associated with this question are correct.

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Definitions:

Cold Weather

A condition of low temperatures in the environment, which can have various economic impacts depending on the context.

Scarcity

The economic problem of having seemingly unlimited human wants in a world of limited resources.

Free Lunch

An idiom expressing the idea that it is impossible to get something for nothing, disputing the possibility of receiving a benefit without providing compensation.

Economic Thinking

The analytical approach to address economic problems, considering costs and benefits in decision making.