Question 1

In Problem 2,the production function is given by f(x)= 4x1/2.If the price of the commodity produced is $50 per unit and the cost of the input is $25 per unit,how much profit will the firm make if it maximize profits?

Accepted Answer

A)   $804
B)   $385
C)   $400
D)   $198
E)   $203 C

Question 2

In Problem 11,the production function is f(x1,x2)=x1/21x1/22.If the price of factor 1 is $8 and the price of factor 2 is $16,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

Accepted Answer

A)   x1= x2.
B)   x1= 0.50x2.
C)   x1 = 2x2.
D)   We can't tell without knowing the price of output.
E)   x1 = 16x2. C

Question 3

In Problem 11,the production function is f(x1,x2)=x1/21x1/22.If the price of factor 1 is $14 and the price of factor 2 is $7,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

Accepted Answer

A)   x1 = 0.50x2.
B)   x1= x2.
C)   We can't tell without knowing the price of output.
D)   x1 =2x2.
E)   x1 = 7x2. A

Question 4

In Problem 11,the production function is f(x1,x2)=x1/21x1/22.If the price of factor 1 is $4 and the price of factor 2 is $6,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

Accepted Answer

A)   x1 = x2.
B)   x1 =0.67x2.
C)   x1 =1.50x2.
D)   We can't tell without knowing the price of output.
E)   x1 = 6x2.

Question 5

In Problem 1,the production function is given by F(L)= 6L2/3.Suppose that the cost per unit of labor is $8 and the price of output is 4,how many units of labor will the firm hire?

Accepted Answer

A)   16
B)   8
C)   4
D)   24
E)   None of the above.

Question 6

In Problem 9,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 $.40 per pound,then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?

Accepted Answer

A)   64
B)   120
C)   248
D)   240
E)   200

Question 7

In Problem 11,the production function is f(x1,x2)=x1/21x1/22.If the price of factor 1 is $8 and the price of factor 2 is $4,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

Accepted Answer

A)   We can't tell without knowing the price of output.
B)   x1 = x2.
C)   x1 = 0.50x2.
D)   x1 =2x2.
E)   x1=4x2.

Question 8

In Problem 9,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 $3 per bushel and the price of fertilizer is $.30 per pound,then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?

Accepted Answer

A)   180
B)   360
C)   94
D)   368
E)   200

Question 9

In Problem 1,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 16,how many units of labor will the firm hire?

Accepted Answer

A)   64
B)   192
C)   32
D)   128
E)   None of the above.

Question 10

In Problem 1,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 16,how many units of labor will the firm hire?

Accepted Answer

A)   32
B)   64
C)   192
D)   128
E)   None of the above.

Question 11

In Problem 2,the production function is given by f(x)= 4x1/2.If the price of the commodity produced is $90 per unit and the cost of the input is $45 per unit,how much profit will the firm make if it maximize profits?

Accepted Answer

A)   $720
B)   $1,444
C)   $705
D)   $358
E)   $363

Question 12

In Problem 1,the production function is given by F(L)= 6L2/3.Suppose that the cost per unit of labor is $12 and the price of output is 12,how many units of labor will the firm hire?

Accepted Answer

A)   32
B)   192
C)   64
D)   128
E)   None of the above.

Question 13

In Problem 9,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?

Accepted Answer

A)   320
B)   328
C)   160
D)   84
E)   200

Question 14

In Problem 1,the production function is given by F(L)= 6L2/3.Suppose that the cost per unit of labor is $12 and the price of output is 9,how many units of labor will the firm hire?

Accepted Answer

A)   54
B)   81
C)   13.50
D)   27
E)   None of the above.

Question 15

In Problem 2,the production function is given by f(x)= 4x1/2.If the price of the commodity produced is $50 per unit and the cost of the input is $40 per unit,how much profit will the firm make if it maximize profits?

Accepted Answer

A)   $235
B)   $123
C)   $250
D)   $504
E)   $128

Question 16

In Problem 2,the production function is given by f(x)=4x1/2.If the price of the commodity produced is $100 per unit and the cost of the input is $45 per unit,how much profit will the firm make if it maximize profits?

Accepted Answer

A)   $1,781.78
B)   $873.89
C)   $888.89
D)   $442.44
E)   $447.44

Question 17

In Problem 9,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 $.40 per pound,then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?

Accepted Answer

A)   368
B)   94
C)   360
D)   180
E)   200

Question 18

In Problem 2,the production function is given by f(x)= 4x1/2.If the price of the commodity produced is $100 per unit and the cost of the input is $15 per unit,how much profit will the firm make if it maximize profits?

Accepted Answer

A)   $2,666.67
B)   $1,331.33
C)   $5,337.33
D)   $2,651.67
E)   $1,336.33

Question 19

In Problem 11,the production function is f(x1,x2)=x1/21x1/22.If the price of factor 1 is $10 and the price of factor 2 is $20,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

Accepted Answer

A)   We can't tell without knowing the price of output.
B)   x1 = 2x2.
C)   x1 =0.50x2.
D)   x1 =x2.
E)   x1 = 20x2.

Question 20

In Problem 9,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 $.40 per pound,then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?

Accepted Answer

A)   360
B)   94
C)   180
D)   368
E)   200

Exam 20:Profit Maximization-Part B

In Problem 2,the production function is given by f(x) = 4x^1/2.If the price of the commodity produced is $50 per unit and the cost of the input is $25 per unit,how much profit will the firm make if it maximize profits?

In Problem 11,the production function is f(x₁,x₂) =x^1/2₁x^1/2₂.If the price of factor 1 is $8 and the price of factor 2 is $16,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

In Problem 11,the production function is f(x₁,x₂) =x^1/2₁x^1/2₂.If the price of factor 1 is $14 and the price of factor 2 is $7,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

In Problem 11,the production function is f(x₁,x₂) =x^1/2₁x^1/2₂.If the price of factor 1 is $4 and the price of factor 2 is $6,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

In Problem 1,the production function is given by F(L) = 6L^2/3.Suppose that the cost per unit of labor is $8 and the price of output is 4,how many units of labor will the firm hire?

In Problem 11,the production function is f(x₁,x₂) =x^1/2₁x^1/2₂.If the price of factor 1 is $8 and the price of factor 2 is $4,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

In Problem 1,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 16,how many units of labor will the firm hire?

In Problem 1,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 16,how many units of labor will the firm hire?

In Problem 2,the production function is given by f(x) = 4x^1/2.If the price of the commodity produced is $90 per unit and the cost of the input is $45 per unit,how much profit will the firm make if it maximize profits?

In Problem 1,the production function is given by F(L) = 6L^2/3.Suppose that the cost per unit of labor is $12 and the price of output is 12,how many units of labor will the firm hire?

In Problem 1,the production function is given by F(L) = 6L^2/3.Suppose that the cost per unit of labor is $12 and the price of output is 9,how many units of labor will the firm hire?

In Problem 2,the production function is given by f(x) = 4x^1/2.If the price of the commodity produced is $50 per unit and the cost of the input is $40 per unit,how much profit will the firm make if it maximize profits?

In Problem 2,the production function is given by f(x) =4x^1/2.If the price of the commodity produced is $100 per unit and the cost of the input is $45 per unit,how much profit will the firm make if it maximize profits?

In Problem 2,the production function is given by f(x) = 4x^1/2.If the price of the commodity produced is $100 per unit and the cost of the input is $15 per unit,how much profit will the firm make if it maximize profits?

In Problem 11,the production function is f(x₁,x₂) =x^1/2₁x^1/2₂.If the price of factor 1 is $10 and the price of factor 2 is $20,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

Exam 20:Profit Maximization-Part B

In Problem 2,the production function is given by f(x) = 4x1/2.If the price of the commodity produced is $50 per unit and the cost of the input is $25 per unit,how much profit will the firm make if it maximize profits?

In Problem 11,the production function is f(x1,x2) =x1/21x1/22.If the price of factor 1 is $8 and the price of factor 2 is $16,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

In Problem 11,the production function is f(x1,x2) =x1/21x1/22.If the price of factor 1 is $14 and the price of factor 2 is $7,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

In Problem 11,the production function is f(x1,x2) =x1/21x1/22.If the price of factor 1 is $4 and the price of factor 2 is $6,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

In Problem 1,the production function is given by F(L) = 6L2/3.Suppose that the cost per unit of labor is $8 and the price of output is 4,how many units of labor will the firm hire?

In Problem 11,the production function is f(x1,x2) =x1/21x1/22.If the price of factor 1 is $8 and the price of factor 2 is $4,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?

In Problem 1,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 16,how many units of labor will the firm hire?

In Problem 1,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 16,how many units of labor will the firm hire?

In Problem 2,the production function is given by f(x) = 4x1/2.If the price of the commodity produced is $90 per unit and the cost of the input is $45 per unit,how much profit will the firm make if it maximize profits?

In Problem 1,the production function is given by F(L) = 6L2/3.Suppose that the cost per unit of labor is $12 and the price of output is 12,how many units of labor will the firm hire?

In Problem 1,the production function is given by F(L) = 6L2/3.Suppose that the cost per unit of labor is $12 and the price of output is 9,how many units of labor will the firm hire?

In Problem 2,the production function is given by f(x) = 4x1/2.If the price of the commodity produced is $50 per unit and the cost of the input is $40 per unit,how much profit will the firm make if it maximize profits?

In Problem 2,the production function is given by f(x) =4x1/2.If the price of the commodity produced is $100 per unit and the cost of the input is $45 per unit,how much profit will the firm make if it maximize profits?

In Problem 2,the production function is given by f(x) = 4x1/2.If the price of the commodity produced is $100 per unit and the cost of the input is $15 per unit,how much profit will the firm make if it maximize profits?

In Problem 11,the production function is f(x1,x2) =x1/21x1/22.If the price of factor 1 is $10 and the price of factor 2 is $20,in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?