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A Competitive Firm Produces a Single Output Using Several Inputs

Question 14

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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 $2 and the quantity of this input that the firm uses increases by 8 units.The prices of all other inputs stay unchanged.From the weak axiom of profit maximization we can tell that


A) the output of the good must have increased by at least 4 units.
B) the inputs of the other factors must have stayed constant.
C) the output of the good must have decreased by at least 2 units.
D) the inputs of at least one of the other factors must have decreased by at least 8 units.
E) the inputs of at least one of the other factors must have increased by at least 8 units.

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