If a Firm Is Using a Factor of Production from a Perfectly

question 137

Multiple Choice

If a firm is using a factor of production from a perfectly competitive market such that MFC > MRP, then profit:

• A) is maximized.
• B) can be increased by using less of the factor.
• C) can be increased by using more of the factor.
• D) can be increased by decreasing the factor price.

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Definitions:

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