A Firm Uses a Single Input to Produce Its Output

question 46

Multiple Choice

A firm uses a single input to produce its output, which is sold in a competitive market.It gets quantity discounts on purchases of its input.If it buys x units of the input, the price it must pay per unit of input is 25/x + 4.If it buys no inputs, it doesn't have to pay anything.The firm's production function is f(x) = 60x - x².If the price of the firm's output is 1, the profit-maximizing amount of input to buy is

• A)56.
• B)0.
• C)42.
• D)28.
• E)None of the above.

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Definitions:

Raw Material Purchasing

The process of acquiring the basic materials or inputs required for the manufacturing or production of goods.

Budgeted Data

Budgeted data refers to financial projections or estimates for future periods, often used for planning and controlling purposes.

Production Needs

The requirements or resources necessary for the production process, including materials, labor, and machinery.

Raw Materials

Basic materials and substances that are used in the production process to create goods, ranging from metals and chemicals to grains and plastics.