A Competitive Firm Has the Three-Factor Production Function F (X

question 14

Multiple Choice

A competitive firm has the three-factor production function f (x, y, z) = (x + y) ^1/2 z ^1/2.The factor prices used to be wx = $1, wy = $2, and wz = $3.Suppose that the price of factor y doubled while the other two prices stayed the same.Then the cost of production

• A)increased by more than 10% but less than 50%.
• B)increased by 50%.
• C)doubled.
• D)stayed the same.
• E)increased by more than 50% but did not double.

Calculate net income and operating income based on given financial information.

Understand the concept of operating revenues and how they differ from other income.

Understand the definitions and differences between prejudices, discrimination, ethnocentrism, and sexism.

Recognize the societal and organizational factors contributing to prejudice and discrimination.

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Definitions:

Consumption

The consumption of products and services by individuals in a household.

Impossibility Theorem

A proposition demonstrated by Kenneth Arrow showing that no system of aggregating individual preferences into social decisions will always yield consistent, nonarbitrary results.

Voting Paradox

A simple demonstration of how majority-rule voting can lead to seemingly contradictory and inconsistent results. A commonly cited illustration of the kind of inconsistency described in the impossibility theorem.

Social Choice

The problem of deciding what society wants. The process of adding up individual preferences to make a choice for society as a whole.