A Competitive Firm Produces Output Using Three Fixed Factors and One

question 51

Multiple Choice

A competitive firm produces output using three fixed factors and one variable factor. The firm's short-run production function is q = 524x - 4x², where x is the amount of variable factor used. The price of the output is $3 per unit and the price of the variable factor is $12 per unit. In the short run, how many units of x should the firm use?

• A) 130
• B) 32
• C) 25
• D) 65
• E) None of the above.

Learn how to differentiate and evaluate new arguments in discussions.

Comprehend the nature of ideological reasoning and its reliance on faith-based absolutes.

Understand why arguments based on religious or political ideologies often meet the Test of Relevance.

Learn the evaluation of premises assumed to be self-evident without support.

---

Definitions:

Tetrapods

A vertebrate group that includes all species with four limbs, such as amphibians, reptiles, birds, and mammals, including those that have lost limbs through evolution.

Eutherian Mammal

A type of mammal characterized by complex placental development, giving birth to live young at a relatively developed stage.

Primates

An order of mammals including humans, apes, monkeys, and prosimians, characterized by high intelligence and dexterous hands.

Convergent Evolution

The process by which organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.