A Competitive Firm's Production Function Is F(x₁, X₂)= 6x^1/2₁

question 21

Multiple Choice

A competitive firm's production function is f(x₁, x₂) = 6x^1/2₁ + 8x^1/2₂.The price of factor 1 is $1 and the price of factor 2 is $4.The price of output is $8.What is the profit-maximizing quantity of output?

• A)416
• B)208
• C)204
• D)419
• E)196

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Definitions:

Defect in Manufacture

A flaw or error in the manufacturing process that results in a product being unsafe or failing to meet intended standards.

Test Drive

The process of operating a vehicle under controlled conditions to evaluate its performance, reliability, or suitability before making a purchase decision.

Bind the Bargain

To make a deal or agreement legally binding, requiring all involved parties to fulfill their obligations as per the terms of the agreement.

Purchase Price

The amount of money paid by a buyer to acquire ownership of a product or property.