The Production Function Is Given by F(x)= 4x^1/2

question 4

Multiple Choice

The production function is given by f(x) = 4x^1/2.If the price of the commodity produced is $60 per unit and the cost of the input is $20 per unit, how much profit will the firm make if it maximizes profits?

• A)$1,444
• B)$705
• C)$720
• D)$358
• E)$363

---

Definitions:

Scarce Good

A product or resource that is limited in availability compared to the desired demand, leading to competition for its acquisition.

Freshwater

Water with low concentrations of dissolved salts, essential for drinking, agriculture, and many industrial processes.

Human Capital

The combined abilities, expertise, and past experiences held by either a person or a group, considered in relation to their worth or expense to a business or nation.

Economics

The social science that studies how individuals, businesses, governments, and nations make choices on allocating scarce resources to satisfy their unlimited wants.