If the Price of a Unit of Output for a Perfectly

question 115

Multiple Choice

If the price of a unit of output for a perfectly competitive firm is $5 and the profit-maximizing condition is met, then MP_L/P_L = MP_K/P_K = MP_A/P_A will be equal to

• A) $5.
• B) $1.67.
• C) $0.20.
• D) $0.05.

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Definitions:

Attract Capital

The process or strategy employed by organizations to secure investment or funding from external sources.

Large Company

A corporation or business entity that has a substantial revenue, number of employees, or market share.

Harvest

In business, the process of realizing or extracting value from an investment, practice, or venture, often used in reference to the selling or exiting phase.

Value Created

The increase in worth that is generated through the operations or activities of a company or organization.