Asked by
Arpit kogta
on Dec 01, 2024
Verified
A profit-maximizing competitive firm uses just one input, x.Its production function is q = 4x1/2.The price of output is $12 and the factor price is $3.The amount of the factor that the firm demands is
A) 64.
B) 16
C) 60.
D) 8.
E) None of the above.
Factor Price
The price at which factors of production (land, labor, capital) are bought and sold.
Production Function
A mathematical model that describes the relationship between inputs used in production and the resulting output.
Profit-maximizing
The process or strategy of adjusting production and operations to achieve the highest possible profit under given conditions.
- Engage with production function concepts to figure out the optimum demands for factors of production.
Verified Answer
JM
Learning Objectives
- Engage with production function concepts to figure out the optimum demands for factors of production.
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