A Competitive Firm Produces Output Using Three Fixed Factors and One

question 47

Multiple Choice

A competitive firm produces output using three fixed factors and one variable factor. The firm's short-run production function is q = 154x - 5x², where x is the amount of variable factor used. The price of the output is $2 per unit and the price of the variable factor is $8 per unit. In the short run, how many units of x should the firm use?

• A) 15
• B) 30
• C) 17
• D) 7
• E) None of the above.

---

Definitions:

Poverty Rate

The proportion of a population living below the national poverty line, indicating the level of economic deprivation in a society.

Non-Hispanic Whites

A demographic group in the United States defined by the Census Bureau as people of European descent who do not identify as Hispanic or Latino.

Hispanics

A term often used in the United States to describe people, cultures, or countries related to Spain, Spanish language, or Latin America.

Social Security Payments

Money that is paid to individuals by the government as part of a social welfare program, typically in retirement or for disability.