A firm has a production function , where and denote the quantities of output and input respectively. If the price of the output is Rs 90 per unit and the price of the input is Rs 20 per unit, the firm can earn a maximum profit of
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A firm has a production function q = 4x^(1/2), where q and x denote the quantities of output and input respectively. If the price of the output is Rs 90 per unit and the price of the input is Rs 20 per unit, the firm can earn a maximum profit of (A) Rs 1,620 (B) Rs 3,600 (C) Rs 808 (D) None of the above
Perfect competition has come up 115 times in 7 exams since 2006.
This question is on Profit maximisation and the competitive firm, part of Perfect competition in Microeconomics.
How a price-taking firm picks output where price equals marginal cost, and when it breaks even or shuts down.
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Question from the JNU SSS 2011 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.