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

question 43

Multiple Choice

The production function is given by f(x) =4x^1/2.If the price of the commodity produced is $80 per unit and the cost of the input is $40 per unit, how much profits will the firm make if it maximizes profits?

• A)$318
• B)$1,284
• C)$640
• D)$625
• E)$323

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Definitions:

Economic Status

An individual's or area's financial condition and stability, often measured by income, employment, and wealth indicators.

Annual Income

The total amount of money earned by an individual or business in one year from all sources.

Work Effort

The amount of physical or mental energy used to perform a task or achieve an objective.

Economic Pie

A metaphor for the total amount of wealth or resources available in an economy that can be distributed among its participants.