If a Firm Is Perfectly Competitive in Its Input Markets

question 70

Multiple Choice

If a firm is perfectly competitive in its input markets, then, in short- run equilibrium:

• A)MC = p.
• B)MRP is the same for all inputs.
• C)w = VMP, for all variable inputs.
• D)w = MRP, for all variable inputs.

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Definitions:

Employer

An individual or organization that hires and remunerates individuals to undertake specific roles or jobs, often providing direction and control over the work performed.

Sole Proprietorship

A business owned and operated by one individual, where there is no legal distinction between the owner and the business entity.

Corporation

A legal entity recognized by law as separate from its owners, providing limited liability and allowing it to own property, enter contracts, and sue or be sued.

Partnership Agreement

A contract between business partners that outlines the terms, conditions, and responsibilities within the partnership.