In a Free Market, a Given Unit of an Input

question 55

Multiple Choice

In a free market, a given unit of an input will be used by the firm that

• A)earns the largest addition to total profit from the use of that unit of input.
• B)has the lowest marginal cost of producing another unit of output.
• C)sells its output for the highest price.
• D)earns the largest total profit.

---

Definitions:

Supranational Laws

Laws that operate above the national levels, established by agreements between nations, and which have binding legal power over the member states.

Intergovernmental Organization

An entity created by treaty, involving two or more nations, to work on issues of common interest or concern at an international level.

Industrial Policies

Strategies and measures adopted by a government to promote the growth and development of specific industrial sectors.

Regulatory Reforms

Changes to laws and regulations intended to improve legal frameworks, often aiming to enhance efficiency, promote transparency, and foster economic growth.