Asked by
Deyeera Balam
on Dec 01, 2024
Verified
A competitive firm produces output using three fixed factors and one variable factor.The firm's short-run production function is q = 154x - 5x2, where x is the amount of variable factor used.The price of the output is $2 per unit and the price of the variable factor is $8 per unit.In the short run, how many units of x should the firm use?
A) 15
B) 30
C) 17
D) 7
E) None of the above.
Variable Factor
In economics, an input in the production process that can be adjusted in the short run to change the quantity of output.
Fixed Factors
Inputs in the production process that cannot be easily increased or decreased in a short period of time.
- Apply the theories of production function to calculate the best factor input demands.
Verified Answer
MS
Learning Objectives
- Apply the theories of production function to calculate the best factor input demands.
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