If a Firm Is Using a Resource Hired in a Perfectly

question 28

Multiple Choice

If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,

• 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:

Civil Law

Civil law refers to the system of laws concerned with private relations between members of a community rather than criminal, military, or religious affairs.

Luxembourg

A small, landlocked country in Western Europe known for its advanced economy and strong financial sector.

Public Notary

A public officer authorized to witness the signing of documents, administer oaths, and perform other acts to help prevent fraud.

Liable in Tort

Being legally responsible for wrongdoing or harm to another as determined by tort law.