If the Price of the Output Good Is $4, the Price

question 11

Multiple Choice

if the price of the output good is $4, the price of factor 1 is $1, and the price of factor 2 is $3, what is the profit-maximizing amount of factor 1?

• A)8
• B)2
• C)1
• D)0
• E)There is not enough information to tell.

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Definitions:

Yerkes-Dodson Law

A theory suggesting that there is an optimal level of arousal for performance, and that too little or too much arousal can adversely affect task performance.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with increased heart rate, alertness, and readiness to respond.

Primary Drives

Basic, innate urges or needs that are essential for survival, such as hunger or thirst.

Drive-Reduction Principle

A theory in psychology that posits motivation arises from the desire to reduce an uncomfortable state of tension caused by unmet needs.