A Competitive Firm Produces Its Output According to the Production

question 5

Multiple Choice

A competitive firm produces its output according to the production function y = min{x3, 1000}.Let p be the price of output, and let the price of input x be $1.The profit maximizing output for this firm is

• A)1,000 if p > 1 and 0 otherwise.
• B)10 for all p.
• C)1,000 for all p.
• D)0 if p < 1/100 and 1,000 otherwise.
• E)None of the above.

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Definitions:

Cooking

The practice or skill of preparing food by combining, mixing, and heating ingredients.

Packaging

The process of designing and producing containers or wrappers for products to be sold or shipped.

Job Descriptions

A detailed account of the responsibilities, duties, required qualifications, and reporting relationships of a particular job.

Intern

A person, often a student or recent graduate, who works within an organization for a limited period of time to gain work experience, usually at a low salary or without pay.