A competitive firm produces its output according to the production function y = min{x3, 1000}.Let p be the price of output, and let the price of input x be $1.The profit maximizing output for this firm is A)1,000 if p 1 and 0 otherwise. B)10 for all p. C)1,000 for all p. D)0 if p

Question

A competitive firm produces its output according to the production function y = min{x3, 1000}.Let p be the price of output, and let the price of input x be $1.The profit maximizing output for this firm is
A)1,000 if p > 1 and 0 otherwise.
B)10 for all p.
C)1,000 for all p.
D)0 if p < 1/100 and 1,000 otherwise.
E)None of the above.

Quizplus · Accepted Answer

The Answer of A competitive firm produces its output according to the production function y = min{x3, 1000}.Let p be the price of output, and let the price of input x be $1.The profit maximizing output for this firm is
A)1,000 if p > 1 and 0 otherwise.
B)10 for all p.
C)1,000 for all p.
D)0 if p < 1/100 and 1,000 otherwise.
E)None of the above.

A Competitive Firm Produces Its Output According to the Production