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

question 8

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 $25 per unit, how much profit will the firm make if it maximize profits?

• A) $804
• B) $385
• C) $400
• D) $198
• E) $203

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Definitions:

Labor Efficiency

A measure of produced output by a labor unit or units in a defined time period, indicating productivity.

Psychological Growth

Refers to the development and maturation of an individual's mind, character, and ability to cope with and understand their emotions and the emotions of others.

Need Hierarchy

A theory of motivation proposed by Abraham Maslow, suggesting that people are motivated by a hierarchy of needs starting from basic physical requirements up to higher needs like self-actualization.

Progression Hypothesis

The concept that suggests an individual's needs or motivations follow a specific order or progression, similar to Maslow's hierarchy of needs.