A Competitive Firm Uses Three Factors of Production

question 13

Multiple Choice

A competitive firm uses three factors of production.Its production function is f (x, y, z) = (x + y) ^1/2 z ^1/2.Originally the factor prices were wx = $1, wy = $2, and wz =$3.The prices of factors x and z decreased to half of their previous levels, but the price of factor y stayed constant.The cost of production

• A)decreased by more than 1/2.
• B)decreased by 1/3.
• C)decreased by exactly 1/2.
• D)stayed constant.
• E)decreased by less than 1/3.

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Definitions:

Concerns

Worries or matters that occupy one's mind, relating to issues of interest or importance to an individual or group.

Neglecting

The act of not providing necessary care, attention, or support, potentially leading to harm or detriment in various contexts.

Title VII

A section of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, and national origin.

Civil Rights Act

A landmark piece of legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin.