The Acme Company Is a Perfect Competitor in Its Input

question 11

Multiple Choice

The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is at its maximum and equals 30. The marginal revenue product of labor is $300. The price of its output:

• A) is $0.10.
• B) is $10.
• C) is $9,000.
• D) cannot be determined without more information.

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Definitions:

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