A competitive firm produces its output according to the production function y = min{x2, 100}.Let w be the price of the factor x, and let the price of output be $1.The demand for x, when the price of x is w, is A)10 when w 10 and 10 otherwise. E)None of the above.

Question

A competitive firm produces its output according to the production function y = min{x2, 100}.Let w be the price of the factor x, and let the price of output be $1.The demand for x, when the price of x is w, is
A)10 when w < 1 and 100 otherwise.
B)100 for all w.
C)10 for all w.
D)0 if w > 10 and 10 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{x2, 100}.Let w be the price of the factor x, and let the price of output be $1.The demand for x, when the price of x is w, is
A)10 when w < 1 and 100 otherwise.
B)100 for all w.
C)10 for all w.
D)0 if w > 10 and 10 otherwise.
E)None of the above.

A Competitive Firm Produces Its Output According to the Production