If the Marginal Products of All Inputs Are Identical, for the Firm

question 37

Multiple Choice

If the marginal products of all inputs are identical, for the firm to be in long- run equilibrium:

• A)input prices cannot be identical.
• B)the output market must be perfectly competitive.
• C)the firm must use just two inputs.
• D)all input prices must be identical.

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Definitions:

Borrowing Money

The act of obtaining funds from another party, typically a financial institution, with the promise to return the principal amount along with interest.

Issuing Stock

The process by which a company releases its shares to the public or existing shareholders to raise capital.

Purchase Assets

The act of acquiring ownership or a controlling interest in physical or intangible items that have value, for operational or investment purposes.

Real Assets

Physical or tangible assets such as real estate, commodities, and natural resources.