Multiple Choice
A competitive firm produces its output according to the production function y = min{x3, 1000}.Let p be the price of output, and let the price of input x be $1.The profit maximizing output for this firm is
A) 1,000 if p > 1 and 0 otherwise.
B) 10 for all p.
C) 1,000 for all p.
D) 0 if p < 1/100 and 1,000 otherwise.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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