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

question 6

Multiple Choice

A profit-maximizing competitive firm uses just one input, x.Its production function is q = 8x^1/2.The price of output is $24 and the factor price is $8.The amount of the factor that the firm demands is

• A)11.
• B)128.
• C)144.
• D)27.71.
• E)None of the above.

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Definitions:

Work Around Products

Alternative solutions or products developed to circumvent problems or limitations in existing processes.

Lean Manufacturing

An organized approach for reducing waste in a manufacturing system without compromising on productivity.

Pull Manufacturing

An important lean practice in which products are manufactured only as they are needed by the customer.

Production Schedules

Timetables that outline the sequence and duration of tasks or operations in the manufacturing process.