A Competitive Firm Uses a Single Input X to Produce

question 51

Multiple Choice

A competitive firm uses a single input x to produce its output y.The firm's production function is given by y =x^3/2 for quantities of x between 0 and 4.For quantities of a greater than 4, the firm's output is y = 4 + x.If the price of the output y is $1 and the price of the input x is $3, how much x should the firm use to maximize its profit?

• A)16/9
• B)4
• C)0
• D)4/9
• E)9/2

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Definitions:

Suppliers

Entities that provide goods or services to another entity, typically a company, for production, resale, or use in operations.

Organization Design

Organizing an entity's roles, duties, and mechanisms in a manner that effectively accomplishes its objectives and strategic plan.

Environmental Factors

External elements such as climate, geography, and natural resources that affect individuals, businesses, and societies.

Strategic Choices

Decisions made by an organization that affect its ability to achieve objectives and gain competitive advantage.