The Production Function Is Given by F(x)= 4x^1/2

question 4

Multiple Choice

the production function is given by f(x) = 4x^1/2.If the price of the commodity produced is $100 per unit and the cost of the input is $45 per unit, how much profit will the firm make if it maximize profits?

• A)$1,781.78
• B)$873.89
• C)$888.89
• D)$442.44
• E)$447.44

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Definitions:

Break-Even

The situation where overall costs are equivalent to overall revenues, resulting in neither gains nor losses.

Monthly

Referring to something that occurs, is measured, or is paid every month.

Dollar Sales

Total revenue generated from the sale of goods or services, expressed in dollars.

Mixed Cost

A cost that contains both variable and fixed cost elements.