Asked by
stefanie barbulescu
on Dec 01, 2024
Verified
The production function is given by f(x) = 4x1/2.If the price of the commodity produced is $60 per unit and the cost of the input is $20 per unit, how much profit will the firm make if it maximizes profits?
A) $1,444
B) $705
C) $720
D) $358
E) $363
Production Function
A mathematical relationship expressing the maximum output that can be produced from a given set of inputs.
Commodity
An elementary good in the business sector that can be interchanged with others of a like kind.
Profit
The financial gain achieved when the amount earned from selling goods or services exceeds the costs associated with production or procurement.
- Recognize the principle of increasing financial rewards in different business environments.
- Understand the impact of input costs and output prices on decision-making in production.
Verified Answer
HF
Learning Objectives
- Recognize the principle of increasing financial rewards in different business environments.
- Understand the impact of input costs and output prices on decision-making in production.