A Competitive Firm with Output Y Has a Production Function

question 11

Multiple Choice

A competitive firm with output y has a production function y = (2x₁ + x₂) ^1/2, where x1 and x2 are inputs used in production.The firm produces the output minimizing cost.With input prices w1 and w2, which of the following is true?

• A)The firm has L-shaped isoquants.
• B)The firm must use the cheaper input.
• C)The firm must use only input x₁ if w₁ < 2w₂.
• D)The technology has increasing returns to scale.
• E)More than one of the above is true.

Determine the gain or loss on intra-entity asset transfers.

Analyze and prepare consolidation entries related to inventory and equipment transfers.

Recognize and compute income effects of intra-entity land sales between parent and subsidiary.

Understand the impact of upstream and downstream inventory transfers in consolidated financial statements.

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Definitions:

Expressed Emotion

A measure of the family environment that is based on how family members speak about each other, indicating levels of criticism, hostility, and emotional involvement.

Delusional Thoughts

False beliefs held with strong conviction despite superior evidence to the contrary, often symptomatic of psychiatric disorders.

Suspicious

The state or trait of being inclined to distrust or be wary of others' motives or actions without clear evidence.

Scolded

Being reprimanded or criticized harshly, often in a way that induces feelings of guilt or shame.