A Profit-Maximizing Competitive Firm Uses Just One Input, X

question 23

Multiple Choice

A profit-maximizing competitive firm uses just one input, x.Its production function is q = 4x^1/2.The price of output is $28 and the factor price is $7.The amount of the factor that the firm demands is

• A)8.
• B)16.
• C)64.
• D)60.
• E)None of the above.

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Definitions:

Linear Perspective

A technique in art and photography that creates the illusion of depth on a flat surface, using lines converging towards a single point on the horizon.

Aerial Perspective

A depth cue that involves the observation of distant objects appearing less sharp and usually bluer than nearer objects, due to the scattering of light through the atmosphere.

Convergence

The coming together of two or more things to merge or intersect, often referred to in the context of ideas, forces, or physical objects.

Perception

The process of organizing, identifying, and interpreting sensory information to represent and understand the environment or an event.