Q 33

The production function is given by f(x) = . If the price of the commodity produced is $80 per unit and the cost of the input is $40 per unit, how much profits will the firm make if it maximizes profits?
A) $318
B) $1,284
C) $640
D) $625
E) $323

Q 34

The production function is f(x_{1}, x_{2}) = _{1} _{ }
_{2}. If the price of factor 1 is $12 and the price of factor 2 is $24, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?
A) x_{1} = x_{2}.
B) x_{1} = 0.50x_{2}.
C) x_{1} = 2x_{2}.
D) x_{1} = 24x_{2}.
E) We can't tell without knowing the price of the output.

Q 35

The production function is f(x_{1}, x_{2}) = _{1} _{ }
_{2}. If the price of factor 1 is $6 and the price of factor 2 is $12, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits?
A) x_{1} = 12x_{2}.
B) x_{1} = 0.50x_{2}.
C) x_{1} = 2x_{2}.
D) x_{1} = x_{2}.
E) We can't tell without knowing the price of the output.