Suppose the Production of a Firm Is Modeled by

question 79

Multiple Choice

Suppose the production of a firm is modeled by where k measures capital (in millions of dollars) and l measures the labor force (in thousands of workers) . Suppose that and the labor force is increasing at the rate of 40 and capital is growing at a rate of $900,000 per year. Determine the rate of change of production.

• A) Production is increasing at a rate of 71.67 units per year.
• B) Production is increasing at a rate of 7.64 units per year.
• C) Production is increasing at a rate of 12.38 units per year.
• D) Production is increasing at a rate of 76.41 units per year.

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Definitions:

Customer Demand

The desire and requirement for products or services by end consumers, which drives the production and supply chain activities.

Increased Revenue

Refers to the growth in income generated from a business's products or services over a certain period.

Sustainability

The ability to maintain and support a process or practice over the long term without harming the environment or depleting resources.

Shared Benefits

Advantages or positive outcomes that are distributed among or accessible to multiple parties.