A Competitive Firm Produces Output Using Three Fixed Factors and One

question 53

Multiple Choice

A competitive firm produces output using three fixed factors and one variable factor.The firm's short-run production function is q = 154x - 5x², where x is the amount of variable factor used.The price of the output is $2 per unit and the price of the variable factor is $8 per unit.In the short run, how many units of x should the firm use?

• A)15
• B)30
• C)17
• D)7
• E)None of the above.

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Definitions:

Sensory Systems

The part of the nervous system responsible for processing sensory information from the environment, including sight, sound, taste, touch, and smell.

Transforming

The process of making a thorough or dramatic change in form, appearance, or character.

Delivering

The process of conveying or transporting items from one location to another, or the act of presenting information or a speech.

Stimulus Energies

The physical or chemical energies that evoke responsiveness in sensory systems, leading to perception.