The Production Function for a Competitive Firm Is Q =

question 130

Multiple Choice

The production function for a competitive firm is Q = K^.5L^.5.The firm sells its output at a price of $10,and can hire labor at a wage of $5.Capital is fixed at 25 units.The profit-maximizing quantity of labor is:

• A) 1.
• B) 2.
• C) 10.
• D) None of the answers are correct.

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Definitions:

Complex Civilizations

Societies with highly developed cultural, political, and economic systems, characterized by urban development, social stratification, and forms of government.

Accumulating Wealth

The process of amassing resources or assets of value over time, typically for the purpose of securing financial stability or achieving economic power.

Algonquians

A group of Native American peoples speaking Algonquian languages, widespread across North America, particularly in the northeastern region.

Settled Agriculture

The practice of cultivating the land and raising crops on a continual basis, a key development in human history that led to the growth of civilizations.