A Competitive Firm's Production Function Is F(x₁, X₂) = 8

question 18

Multiple Choice

A competitive firm's production function is f(x₁, x₂) = 8 ₁ + 8 ₂. The price of factor 1 is $1 and the price of factor 2 is $3. The price of output is $6. What is the profit-maximizing quantity of output?

• A) 256
• B) 512
• C) 252
• D) 516
• E) 244

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