In Problem 11, the Production Function Is F(x₁, X₂)

question 12

Multiple Choice

In Problem 11, the production function is f(x₁, x₂) . If the price of factor 1 is $8 and the price of factor 2 is $4, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

• A) We can't tell without knowing the price of output.
• B) x₁ = x₂.
• C) x₁ = 0.50x₂.
• D) x₁ = 2x₂.
• E) x₁ = 4x₂.

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Definitions:

Divisional Structure

constitutes an organizational framework where divisions are established based on products, services, market geography, or customer types and operate semi-autonomously with their own resources.

Matrix Structure

is an organizational layout that assigns employees to projects and functional areas simultaneously, allowing for more dynamic and flexible team composition.

Team Leaders

Leaders who report to middle managers and supervise non-managerial workers.

Performance Accountability

The process of holding individuals or groups responsible for achieving specific outcomes or performance targets.