A Competitive Firm Produces Output Using Three Fixed Factors and One

question 20

Multiple Choice

A competitive firm produces output using three fixed factors and one variable factor.The firm's short-run production function is q = 524x - 4x², where x is the amount of variable factor used.The price of the output is $3 per unit and the price of the variable factor is $12 per unit.In the short run, how many units of x should the firm use?

• A)130
• B)32
• C)25
• D)65
• E)None of the above.

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Definitions:

Restructuring

The process of restructuring a company's legal, ownership, operational, or other configurations to enhance its profitability or to better suit its current requirements.

Termination

involves the formal process of ending the employment or contractual relationship with an individual or entity, often due to performance issues, restructuring, or economic constraints.

Strategic Benefits

The long-term advantages an organization gains from implementing certain actions, policies, or investments, contributing to its overall objectives.

Financial Results

The outcome of a company's operations and decisions, typically reflected in its income statement, balance sheet, and cash flow statement.