Which of the Following Profit Functions Exhibits a Linear Production $\pi$

question 134

Multiple Choice

Which of the following profit functions exhibits a linear production function?

• A)\(\pi\) = P x K^0.75L^0.50 - 20L - 35K.
• B)\(\pi\) = P x min(2L, 5K) - 20L - 35K.
• C)\(\pi\) = P x (3K + 4L) - 20L - 35K.
• D)\(\pi\) = P x (3K^0.5 + 4L^0.5)^1/0.2 - 20L - 35K.

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Definitions:

Energy

The capacity to do work or produce power, manifested in various forms such as heat, light, motion, and chemical energy.

Commodity Prices

The market prices for raw materials and primary agricultural products that are traded on exchanges.

Productive Resources

The inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

British Thermal Unit

A unit of heat energy defined as the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.