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    Microeconomics Theory with Applications
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    Exam 11: Input Markets and the Allocation of Resources
  5. Question
    Donna's Schmoo Firm Uses One Input, Z, and She Sells
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Donna's Schmoo Firm Uses One Input, Z, and She Sells

Question 14

Question 14

Multiple Choice

Donna's schmoo firm uses one input, z, and she sells her output at $10 per unit. The marginal product of z is 10 - z and the price of z is $20 per unit. The profit maximizing quantity of z is:


A) 5.0.
B) 5.5.
C) 8.0.
D) 10.0.

Correct Answer:

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