A Firm Increases Its Purchases of a Factor of Production

question 1

Multiple Choice

A firm increases its purchases of a factor of production in a perfectly competitive market from 10 units to 11 units.If the market price of the factor is $20 per unit, the marginal factor cost for the eleventh unit is:

• A) $10.
• B) $20.
• C) $200.
• D) $220.

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Definitions:

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Medical Record

A comprehensive document containing a patient's personal identification, medical history, treatment plans, and progress notes.

Auricle

The visible part of the ear that is outside the head, also known as the pinna, which helps direct sound into the ear canal.

Ear Canal

The narrow passage leading from the outer ear to the eardrum.