A Competitive Firm Produces Output Using Three Fixed Factors and One

question 53

Multiple Choice

A competitive firm produces output using three fixed factors and one variable factor.The firm's short-run production function is q = 154x - 5x², where x is the amount of variable factor used.The price of the output is $2 per unit and the price of the variable factor is $8 per unit.In the short run, how many units of x should the firm use?

• A)15
• B)30
• C)17
• D)7
• E)None of the above.

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Definitions:

External Supply

The process of obtaining goods, services, or resources from outside the organization to fulfill its needs or operational requirements.

Professional Associations

Professional associations are organizations seeking to further a particular profession, protect the interests of its members, and maintain standards of practice and ethics.

Mass Customization

A manufacturing and marketing strategy that combines mass production's efficiency with the ability to tailor products to individual customer preferences.

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An individual's desires and priorities regarding their career path, including industry, role, company size, and geographic location.