A Firm's Production Function Is Q = 12x0

question 2

Multiple Choice

A firm's production function is q = 12x0.50y0.50, where x and y are the amounts of factors x and y that the firm uses as inputs.If the firm is minimizing unit costs and if the price of factor x is 5 times the price of factor y,the ratio in which the firm will use factors x and y is closest to

• A)x/y = 0.20.
• B)x/y = 0.40.
• C)x/y = 1.
• D)x/y = 1.67.
• E)x/y = 5.

Use graph interpretation skills to solve equations.

Understand the relationship between a function and its reciprocal.

Understand the components and purposes of different types of business plans (operational, strategic, budgeting, and forecasting).

Distinguish between the roles of budgeting and forecasting in business planning.

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Definitions:

Estuaries

Coastal water bodies where freshwater from rivers and streams mixes with saltwater from the ocean, fostering high biological diversity and productivity.

Equator

An imaginary line around the Earth exactly halfway between the North and South Poles, dividing the Earth into the Northern and Southern Hemispheres.

Latitude

A geographical coordinate specifying a location's distance north or south of the equator.

Continental Interior

Areas far from the coastline, often characterized by unique climatic and ecological conditions due to their distance from the moderating influence of large bodies of water.