A Competitive Firm Uses Three Factors of Production

question 13

Multiple Choice

A competitive firm uses three factors of production.Its production function is f (x, y, z) = (x + y) ^1/2 z ^1/2.Originally the factor prices were wx = $1, wy = $2, and wz =$3.The prices of factors x and z decreased to half of their previous levels, but the price of factor y stayed constant.The cost of production

• A)decreased by more than 1/2.
• B)decreased by 1/3.
• C)decreased by exactly 1/2.
• D)stayed constant.
• E)decreased by less than 1/3.

---

Definitions:

Seat of Emotions

A metaphorical term that refers to the brain regions responsible for the generation and regulation of emotions, typically involving the limbic system.

Amygdala

A region in the brain involved in processing emotions, particularly fear and aggression, and forming emotional memories.

Medulla

A section of the brainstem responsible for regulating vital body functions, such as breathing and heart rate.

Congenitally Blind

Refers to individuals who are blind from birth due to genetic or developmental factors.