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

question 11

Multiple Choice

In Problem 2, the production function is given by f(x) . If the price of the commodity produced is $50 per unit and the cost of the input is $40 per unit, how much profit will the firm make if it maximize profits?

• A) $235
• B) $123
• C) $250
• D) $504
• E) $128

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Definitions:

Actual Results

The real outcomes or data recorded from operations or activities, compared to projections or budget expectations.

Net Operating Income

A company's income after operating expenses are deducted, but before income taxes and interest expenses are subtracted.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company.

Units

Measurements or quantities of a product or service, often used as a basis for transactions and inventory.