A Competitive Firm's Production Function Is F(x₁, X₂)= 8x^1/2₁ +8x^1/2₂

question 5

Multiple Choice

A competitive firm's production function is f(x₁, x₂) = 8x^1/2₁ +8x^1/2₂.The price of factor 1 is $1 and the price of factor 2 is $3.The price of output is $6.What is the profit-maximizing quantity of output?

• A)256
• B)512
• C)252
• D)516
• E)244

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Definitions:

Regulatory Force

External forces, often in the form of government laws, regulations, and policies, that can impact a business’s operations and its approach to the market.

Environmental Scanning

The process by which businesses monitor and analyze their external environment to identify opportunities and threats.

Technological Environmental Force

Influences in the business environment resulting from changes in technology, impacting how products are produced, marketed, and distributed.

Social Force

Factors arising from societal norms and cultural values that influence individuals' behaviors, attitudes, and interactions within a community.