ECON 2350 Study Guide - Midterm Guide: Production Function, Marginal Cost, Marginal Product
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Note: this exam includes 8 multiple choice questions. Identify the choice that best completes the statement or answers to the question. Otherwise there is no mark for the question. You have 80 minutes to complete all of them and fill your answer on you scantron. Only a basic calculator is allowed during exam; no other electronic devices. 2 and 4: the production function is given by f(x) = 4x 1 2 . If the price of the commodity produced is per unit and the cost of the input is per unit, how much profit will the firm make if it maximizes profits? a. b. c. d. e. ___: the production function is f(x1, x2) = x 1 2. ___: a firm"s production function is q = 26x0. 33y0. 67, where x and y are the amounts of factors x and y that the firm uses as inputs.
