For a Firm Which Is a Perfect Competitor in Its

question 15

Multiple Choice

For a firm which is a perfect competitor in its input markets, in long- run equilibrium:

• A)p = LRMC.
• B)MRP/w is identical for all inputs.
• C)MR = w for all inputs.
• D)all input prices are identical.

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Definitions:

Intrinsic Fairness

An ethical principle referring to the inherent or natural equity or justice in processes, interactions, or distributions among individuals or groups.

Rational Behavior

The assumption that individuals make decisions based on seeking the most benefit while minimizing costs, according to their preferences and information.

Economic Models

Simplified representations of complex economic processes, using mathematical techniques and assumptions to understand and predict economic behavior and outcomes.

Economic Actors

Individuals, households, businesses, and governments that make decisions about the allocation of resources and engage in the production, distribution, and consumption of goods and services.