A Competitive Firm Produces a Single Output Using Several Inputs

question 14

Multiple Choice

A competitive firm produces a single output using several inputs.The price of output rises by $4 per unit.The price of one of the inputs increases by $2 and the quantity of this input that the firm uses increases by 8 units.The prices of all other inputs stay unchanged.From the weak axiom of profit maximization we can tell that

• A)the output of the good must have increased by at least 4 units.
• B)the inputs of the other factors must have stayed constant.
• C)the output of the good must have decreased by at least 2 units.
• D)the inputs of at least one of the other factors must have decreased by at least 8 units.
• E)the inputs of at least one of the other factors must have increased by at least 8 units.

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Definitions:

Coupled Reaction

A chemical reaction that is driven by another reaction, utilizing the energy released from one reaction to drive another.

Energy

The capacity to do work or produce change, existing in various forms such as kinetic, potential, thermal, electrical, and chemical energy.

Metabolic Pathway

A series of chemical reactions occurring within a cell that leads to the transformation of one substance into another.

Intermediate Products

Goods that are used in the production process to make other goods, not intended for final consumption.