For a Firm Selling Its Product in a Perfectly Competitive

question 41

Multiple Choice

For a firm selling its product in a perfectly competitive market, the demand curve for a factor of production is downward sloping because

• A) a factor's marginal product increases when the price of the factor increases.
• B) firms must hire more factors of production if they want to increase their output.
• C) to sell more output, the firm must lower the price of its product.
• D) of the diminishing marginal product of the factor.
• E) None of the above answers is correct.

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