A competitive firm produces output using three fixed factors and one variable factor. The firm’s short- run production function is q = x.5 , where x is the amount of variable factor used. The price of the output is $2 per unit and the price of the variable factor is $0.5 per unit. In the short run, how many units of x should the firm use? (Hint: Marginal Product = 1/(2x.5)

Answer rating: 100% (QA)

qx05 To maximize the profit from production ... View the full answer