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

question 13

Multiple Choice

In Problem 2, the production function is given by f(x) . If the price of the commodity produced is $90 per unit and the cost of the input is $45 per unit, how much profit will the firm make if it maximize profits?

• A) $720
• B) $1,444
• C) $705
• D) $358
• E) $363

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of goods or services.

Bottom-up Change

A change strategy where ideas and initiatives originate from lower-level employees and move upward through the organizational hierarchy.

Top-down Change

What occurs when change initiatives come from senior management.

Incremental Change

Gradual, step-by-step modifications or improvements made to processes, systems, or products over time, rather than dramatic or radical transformations.