A Competitive Firm's Production Function Is F(x₁, X₂) = 12

question 5

Multiple Choice

A competitive firm's production function is f(x₁, x₂) = 12 ₁ + 4 ₂. The price of factor 1 is $1 and the price of factor 2 is $2. The price of output is $4. What is the profit-maximizing quantity of output?

• A) 304
• B) 608
• C) 300
• D) 612
• E) 292

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Definitions:

Artificial Sweetener

Substances used to sweeten foods and beverages that contain little to no calories, used as an alternative to sugar for weight control or diabetes management.

Fetus

a developing mammal or human from the end of the embryonic stage until birth.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing fetus while removing waste products.