Asked by
Jakob zum Kolk
on Dec 01, 2024
Verified
if the price of the output good is $4, the price of factor 1 is $1, and the price of factor 2 is $3, what is the profit-maximizing amount of factor 1?
A) 8
B) 2
C) 1
D) 0
E) There is not enough information to tell.
Output Good
A product or service that is the result of a production process.
Profit-maximizing
A strategy or approach by businesses aimed at achieving the highest possible profit from their operations.
Factor 2
In a variety of contexts, this could refer to the second variable or element in an equation, model, or experimental design that influences outcomes.
- Comprehend the connection between the costs of inputs, the prices of outputs, and the maximization of profits.
- Utilize production functions to determine the ideal amounts of inputs for maximizing profits.
- Identify the best combination of various inputs considering their respective costs and the production function.
Verified Answer
NL
Learning Objectives
- Comprehend the connection between the costs of inputs, the prices of outputs, and the maximization of profits.
- Utilize production functions to determine the ideal amounts of inputs for maximizing profits.
- Identify the best combination of various inputs considering their respective costs and the production function.