A competitive firm uses a single input x to produce its output y. The firm's production function is given by y = for quantities of x between 0 and 4. For quantities of a greater than 4, the firm's output is y = 4 + x. If the price of the output y is $1 and the price of the input x is $3, how much x should the firm use to maximize its profit?
A)16/9
B) 4
C) 0
D)4/9
E)9/2

Question

A competitive firm uses a single input x to produce its output y. The firm's production function is given by y =  for quantities of x between 0 and 4. For quantities of a greater than 4, the firm's output is y = 4 + x. If the price of the output y is $1 and the price of the input x is $3, how much x should the firm use to maximize its profit?
A)16/9 
B) 4 
C) 0 
D)4/9 
E)9/2

Quizplus · Accepted Answer

The Answer of A competitive firm uses a single input x to produce its output y. The firm's production function is given by y =  for quantities of x between 0 and 4. For quantities of a greater than 4, the firm's output is y = 4 + x. If the price of the output y is $1 and the price of the input x is $3, how much x should the firm use to maximize its profit?
A)16/9 
B) 4 
C) 0 
D)4/9 
E)9/2

A Competitive Firm Uses a Single Input X to Produce