In Problem 2, the Production Function Is Given by F(x)

question 7

Multiple Choice

In Problem 2, the production function is given by f(x) . If the price of the commodity produced is $100 per unit and the cost of the input is $15 per unit, how much profit will the firm make if it maximize profits?

• A) $2,666.67
• B) $1,331.33
• C) $5,337.33
• D) $2,651.67
• E) $1,336.33

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Definitions:

Annuity Payment

A periodic payment received from an annuity investment, typically for retirement income.

Final Payment

the last payment that completes the payoff of a loan or financial obligation.

Compounded Monthly

The method of calculating interest where the earned interest is added to the principal balance each month.

End-of-month Payments

Payments made at the end of each month, often used in billing cycles or loan agreements.