A Competitive Firm Produces a Single Output Using Several Inputs

question 24

Multiple Choice

A competitive firm produces a single output using several inputs.The price of output rises by $4 per unit.The price of one of the inputs increases by $4 and the quantity of this input that the firm uses increases by 16 units.The prices of all other inputs stay unchanged.From the weak axiom of profit maximization we can tell that

• A)the inputs of the other factors must have stayed constant.
• B)the inputs of at least one of the other factors must have decreased by at least 16 units.
• C)the output of the good must have increased by at least 16 units.
• D)the output of the good must have decreased by at least 8 units.
• E)the inputs of at least one of the other factors must have increased by at least 16 units.

---

Definitions:

Risky Behavior

Actions that expose individuals to danger or harm, often with a disregard for the negative consequences.

Gray Matter

The darker tissue of the brain and spinal cord, consisting mainly of nerve cell bodies and branching dendrites.

Frontal Lobes

Regions of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Myelination

The process of forming a myelin sheath around the nerves, improving the speed and efficiency of electrical impulses.