A Competitive Firm Produces Output Using Three Fixed Factors and One

question 20

Multiple Choice

A competitive firm produces output using three fixed factors and one variable factor.The firm's short-run production function is q = 524x - 4x², where x is the amount of variable factor used.The price of the output is $3 per unit and the price of the variable factor is $12 per unit.In the short run, how many units of x should the firm use?

• A)130
• B)32
• C)25
• D)65
• E)None of the above.

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Definitions:

American Federalism

A political system in which power is divided and shared between a national, or federal, government and state governments, each with its own set of powers.

Dual Federalism

Dual Federalism is a political arrangement in which power is divided between the federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government.

Cooperative Federalism

A concept of federalism in which national, state, and local governments interact cooperatively and collectively to solve common problems, rather than making policies separately.

Great Depression

A severe worldwide economic downturn that occurred during the 1930s, starting in the United States.