The Production Function Is Given by F(x)= 4x^1/2

question 18

Multiple Choice

The production function is given by f(x) = 4x^1/2.If the price of the commodity produced is $100 per unit and the cost of the input is $15 per unit, how much profit will the firm make if it maximize profits?

• A)$2,666.67
• B)$1,331.33
• C)$5,337.33
• D)$2,651.67
• E)$1,336.33

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Definitions:

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting standards in the United States.

Economic Entity Assumption

A fundamental principle in accounting that separates the transactions of a business from those of its owners or other businesses.

Sole Proprietorship

A business structure owned by a single individual, where the owner is personally responsible for all financial obligations and liabilities.

Personal Economic Events

This refers to financial transactions and activities that directly affect an individual's economic situation, such as income, expenditures, savings, and investments.