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

question 6

Multiple Choice

A profit-maximizing competitive firm uses just one input, x.Its production function is q = 8x^1/2.The price of output is $24 and the factor price is $8.The amount of the factor that the firm demands is

• A)11.
• B)128.
• C)144.
• D)27.71.
• E)None of the above.

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Definitions:

Negligence Per Se

The doctrine that provides that a conclusive presumption of breach of duty arises when a defendant has violated a statute and thereby caused a harm the statute was designed to prevent to a person the statute was designed to protect.

Foreign Nation

A country that is located outside one's own country and is governed by a separate legal and political system.

Punitive Damages

Punitive Damages are monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish the defendant for particularly egregious conduct and deter future similar acts.

Plaintiff

The person or party who initiates a lawsuit against another party in a court of law.