A Firm Uses a Single Input to Produce Its Output

question 3

Multiple Choice

A firm uses a single input to produce its output, which is sold in a competitive market. It gets quantity discounts on purchases of its input. If it buys x units of the input, the price it must pay per unit of input is + 4. If it buys no inputs, it doesn't have to pay anything. The firm's production function is f(x) = 40x - x². If the price of the firm's output is 1, the profit-maximizing amount of input to buy is

• A) 0.
• B) 36.
• C) 18.
• D) 27.
• E) None of the above.

---

Definitions:

Confidence Interval

A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a specified level of confidence.

Unemployment Rate

The segment of the labor force that is not employed but is actively on the lookout for a job.

Statistics Canada

The national statistical office of Canada, responsible for producing statistics that help Canadians better understand their country—its population, resources, economy, society, and culture.

Warranty Users

Individuals or entities that utilize the guarantee provided by manufacturers or sellers, ensuring repair or replacement of products within a specified time frame due to defects.