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

question 15

Multiple Choice

The production function is given by f(x) =4x^1/2.If the price of the commodity produced is $60 per unit and the cost of the input is $10 per unit, how much profit will the firm make if it maximizes profits?

• A)$1,440
• B)$718
• C)$2,884
• D)$1,425
• E)$723

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Definitions:

Price Reduction

A decrease in the selling price of goods or services, often to increase demand or meet competitor pricing.

Traceable Fixed Expense

A fixed expense that can be directly linked to a specific department, product, or activity without any allocation.

Net Operating Income

The profit generated from a business's operations after subtracting operating expenses from operating revenues.

Price Hike

An increase in the price of goods or services, often due to higher production costs or increased demand.