A competitive firm produces output using three fixed factors and one variable factor.The firm's short-run production function is q =524x- 4x2,where x is the amount of variable factor used.The price of the output is $3 per unit and the price of the variable factor is $12 per unit.In the short run,how many units of x should the firm use?

A) 130 B) 32 C) 25 D) 65 E) None of the above. A) 130 B) 32 C) 25 D) 65 E) None of the above.

Exam 20:Profit Maximization-Part A

The production function is given by F(L)=6L^2/3.Suppose that the cost per unit of labor is $16 and the price of output is $8.How many units of labor will the firm hire?

(Multiple Choice)

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Question 21

The weak axiom of profit-maximizing behavior states that in a modern mixed economy,firms have only a weak incentive to maximize profits.

(True/False)

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Question 22

A competitive firm produces output using three fixed factors and one variable factor.The firm's short-run production function is q =524x- 4x²,where x is the amount of variable factor used.The price of the output is $3 per unit and the price of the variable factor is $12 per unit.In the short run,how many units of x should the firm use?

(Multiple Choice)

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Question 23

Philip owns and operates a gas station.Philip works 40 hours a week managing the station but doesn't draw a salary.He could earn $600 a week doing the same work for Terrance.The station owes the bank $100,000 and Philip has invested $100,000 of his own money.If Philip's accounting profits are $1,000 per week while the interest on his bank debt is $500 per week,the business's economic profits are

(Multiple Choice)

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Question 24

If the value of the marginal product of factor x increases as the quantity of x increases and the value of the marginal product of x is equal to the wage rate,then the profit-maximizing amount of x is being used.

(True/False)

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Question 25

Jiffy-Pol Consultants is paid $1,000,000 for each percentage of the vote that Senator Sleaze receives in the upcoming election.Sleaze's share of the vote is determined by the number of slanderous campaign ads run by Jiffy-Pol according to the function S=100N/(N+ 1),where N is the number of ads.If each ad costs $10,000 approximately how many ads should Jiffy-Pol buy in order to maximize its profits?

(Multiple Choice)

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Question 26

A competitive firm uses a single input x to produce its output y.The firm's production function is given by y = x^3/2 for quantities of x between 0 and 4.For quantities of a greater than 4,the firm's output is y = 4 + x.If the price of the output y is $1 and the price of the input x is $3,how much x should the firm use to maximize its profit?

(Multiple Choice)

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Question 27

A competitive firm's production function is f(x₁,x₂)=8x^1/2₁ +8x^1/2₂.The price of factor 1 is $1 and the price of factor 2 is $3.The price of output is $6.What is the profit-maximizing quantity of output?

(Multiple Choice)

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Question 28

The production function is given by f(x)=4x^1/2.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?

(Multiple Choice)

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Question 29

A firm produces one output with one input and has decreasing returns to scale.The price that it pays per unit of input and the price it gets per unit of output are independent of the amount that this firm buys or sells.If the government taxes its net profits at some percentage rate and subsidizes its inputs at the same percentage rate,the firm's profit-maximizing output will not change.

(True/False)

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Question 30

Philip owns and operates a gas station.Philip works 40 hours a week managing the station but doesn't draw a salary.He could earn $700 a week doing the same work for Terrance.The station owes the bank $100,000 and Philip has invested $100,000 of his own money.If Philip's accounting profits are $1,000 per week while the interest on his bank debt is $400 per week,the business's economic profits are

(Multiple Choice)

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Question 31

When Farmer Hoglund applies N pounds of fertilizer per acre,the marginal product of fertilizer is 1 =N/200 bushels of corn.If the price of corn is $1 per bushel and the price of fertilizer is $.20 per pound,then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?

(Multiple Choice)

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Question 32

Jiffy-Pol Consultants is paid $1,000,000 for each percentage of the vote that Senator Sleaze receives in the upcoming election.Sleaze's share of the vote is determined by the number of slanderous campaign ads run by Jiffy-Pol according to the function S = 100N/(N + 1),where N is the number of ads.If each ad costs $4,900 approximately how many ads should Jiffy-Pol buy in order to maximize its profits?

(Multiple Choice)

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Question 33

If the short-run marginal costs of producing a good are $40 for the first 200 units and $50 for each additional unit beyond 200,then in the short run,if the market price of output is $46,a profit-maximizing firm will

(Multiple Choice)

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Question 34

A competitive firm produces a single output using several inputs.The price of output rises by $4 per unit.The price of one of the inputs increases by $4 and the quantity of this input that the firm uses increases by 16 units.The prices of all other inputs stay unchanged.From the weak axiom of profit maximization we can tell that

(Multiple Choice)

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Question 35

When Farmer Hoglund applies N pounds of fertilizer per acre,the marginal product of fertilizer is 1-N/200 bushels of corn.If the price of corn is $4 per bushel and the price of fertilizer is $1.20 per pound,then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?

(Multiple Choice)

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Question 36

A competitive firm produces a single output using several inputs.The price of output rises by $3 per unit.The price of one of the inputs increases by $6 and the quantity of this input that the firm uses increases by 12 units.The prices of all other inputs stay unchanged.From the weak axiom of profit maximization we can tell that

(Multiple Choice)

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Question 37

The production function is f(x₁,x₂)=x^1/2₁x^1/2₂.If the price of factor 1 is $12 and the price of factor 2 is $24,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

(Multiple Choice)

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Question 38

The production function is given by F(L)=6L^2/3.Suppose that the cost per unit of labor is $16 and the price of output is $12.How many units of labor will the firm hire?

(Multiple Choice)

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Question 39

If the short-run marginal costs of producing a good are $20 for the first 400 units and $30 for each additional unit beyond 400,then in the short run,if the market price of output is $21,a profit-maximizing firm will

(Multiple Choice)

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Question 40

Showing 21 - 40 of 49

Exam 20:Profit Maximization-Part A

The production function is given by F(L)=6L2/3.Suppose that the cost per unit of labor is $16 and the price of output is $8.How many units of labor will the firm hire?

The weak axiom of profit-maximizing behavior states that in a modern mixed economy,firms have only a weak incentive to maximize profits.

If the value of the marginal product of factor x increases as the quantity of x increases and the value of the marginal product of x is equal to the wage rate,then the profit-maximizing amount of x is being used.

A competitive firm's production function is f(x1,x2)=8x1/21 +8x1/22.The price of factor 1 is $1 and the price of factor 2 is $3.The price of output is $6.What is the profit-maximizing quantity of output?

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?

If the short-run marginal costs of producing a good are $40 for the first 200 units and $50 for each additional unit beyond 200,then in the short run,if the market price of output is $46,a profit-maximizing firm will

The production function is f(x1,x2)=x1/21x1/22.If the price of factor 1 is $12 and the price of factor 2 is $24,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

The production function is given by F(L)=6L2/3.Suppose that the cost per unit of labor is $16 and the price of output is $12.How many units of labor will the firm hire?

If the short-run marginal costs of producing a good are $20 for the first 400 units and $30 for each additional unit beyond 400,then in the short run,if the market price of output is $21,a profit-maximizing firm will

Demand-Part A

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics-Part A

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

Filters

The production function is given by F(L)=6L^2/3.Suppose that the cost per unit of labor is $16 and the price of output is $8.How many units of labor will the firm hire?

A competitive firm's production function is f(x₁,x₂)=8x^1/2₁ +8x^1/2₂.The price of factor 1 is $1 and the price of factor 2 is $3.The price of output is $6.What is the profit-maximizing quantity of output?

The production function is given by f(x)=4x^1/2.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?

The production function is f(x₁,x₂)=x^1/2₁x^1/2₂.If the price of factor 1 is $12 and the price of factor 2 is $24,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

The production function is given by F(L)=6L^2/3.Suppose that the cost per unit of labor is $16 and the price of output is $12.How many units of labor will the firm hire?