If a Firm Is Using a Resource Hired in a Perfectly

question 117

Multiple Choice

If a firm is using a resource hired in a perfectly competitive market, and if the marginal resource cost is less than its marginal revenue product,

• A) more of the resource should be used.
• B) less of the resource should be used.
• C) the firm should pay a lower price for the resource.
• D) the firm should pay a higher price for the resource.
• E) the firm is using the optimal amount of the resource.

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Definitions:

Overindulge

To engage excessively in an activity or consumption, typically eating, drinking, or other forms of pleasure, to a degree that may be harmful.

Alcohol

A chemical substance found in drinks such as beer, wine, and spirits that can cause intoxication and has various effects on the body.

Beriberi

A disease resulting from lack of vitamin B1, thiamine.

Vitamin B

A group of water-soluble vitamins that play significant roles in cell metabolism.