The Production Function of a Competitive Firm Is Described by the Equation

question 44

Multiple Choice

The production function of a competitive firm is described by the equation y = The factor prices are p1 = $1 and p2 = $4 and the firm can hire as much of either factor it wants at these prices. The firm's marginal cost is

• A) constant and equal to .50.
• B) constant and equal to 3.
• C) increasing.
• D) decreasing.
• E) None of the above.

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Definitions:

Motivators

Factors that encourage or stimulate a person to act or work harder, often enhancing their engagement and performance.

High Need

A psychological condition where an individual has a greater than average requirement for a certain stimulus or condition to achieve satisfaction.

Interpersonal Relationships

The connections and interactions between two or more people, which may be based on sentiments, love, solidarity, regular business interactions, or some other type of social commitment.

Two-factor Theory

Two-factor theory, also known as Herzberg's motivation-hygiene theory, posits that job satisfaction and dissatisfaction arise from two distinct sets of factors: motivators and hygiene factors.