A Competitive Firm Produces a Single Output Using Several Inputs

question 14

Multiple Choice

A competitive firm produces a single output using several inputs.The price of output rises by $4 per unit.The price of one of the inputs increases by $2 and the quantity of this input that the firm uses increases by 8 units.The prices of all other inputs stay unchanged.From the weak axiom of profit maximization we can tell that

• A)the output of the good must have increased by at least 4 units.
• B)the inputs of the other factors must have stayed constant.
• C)the output of the good must have decreased by at least 2 units.
• D)the inputs of at least one of the other factors must have decreased by at least 8 units.
• E)the inputs of at least one of the other factors must have increased by at least 8 units.

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Definitions:

Colonial Elites

Individuals or families of significant economic, social, and political influence during the colonial period, often landowners or officials.

British

Relating to Great Britain or the United Kingdom, including its people, culture, and historical influences.

Farmers' Wives

Women married to farmers, who often play a significant role in managing family farms and agricultural activities.

Self-Sufficiency

The ability to fulfill all of one's needs without reliance on external assistance, emphasizing independence and sustainable living.