A Profit-Maximizing Competitive Firm Uses Just One Input, X

question 17

Multiple Choice

A profit-maximizing competitive firm uses just one input, x.Its production function is q = 4x^1/2.The price of output is $12 and the factor price is $3.The amount of the factor that the firm demands is

• A)64.
• B)16
• C)60.
• D)8.
• E)None of the above.

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Definitions:

Policymakers

Individuals or entities responsible for making the rules and guidelines that govern societal operations, often within government bodies or institutions.

Efficient Outcomes

Results or solutions in which resources are allocated in the most effective way, maximizing benefits and minimizing costs.

Preferences

Refers to the subjective tastes and desires of consumers which influence their choices and decision-making in purchasing goods and services.

Political Logrolling

A practice where politicians exchange favors by supporting each other's proposals or policies.