A Competitive Firm Produces Its Output According to the Production

question 39

Multiple Choice

A competitive firm produces its output according to the production function y = min{x2, 100}.Let w be the price of the factor x, and let the price of output be $1.The demand for x, when the price of x is w, is

• A)10 when w < 1 and 100 otherwise.
• B)100 for all w.
• C)10 for all w.
• D)0 if w > 10 and 10 otherwise.
• E)None of the above.

---

Definitions:

Experimentation

The process of conducting tests or trials to explore hypotheses or demonstrate practical operations and their effects.

Animals

Living organisms that typically have sensory organs, the ability to move, and the necessity to consume organic substances for survival.

Utilitarian Analysis

An assessment method grounded in utilitarianism, evaluating actions based on their consequences for the overall happiness or well-being.

Rights

Charter of entitlements and freedoms guaranteed to individuals, often protected by law.