The Marginal Factor Cost in a Perfectly Competitive Market

question 185

Multiple Choice

The marginal factor cost in a perfectly competitive market:

• A) is equal to the market price of the factor.
• B) is less than the market price of the factor.
• C) is greater than the market price of the factor.
• D) increases with the quantity of input demanded.

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Definitions:

Cognitive Sociology

An area of sociology that focuses on the social construction of reality, exploring how individual cognition and societal phenomena influence each other.

Cognitive Anthropology

A branch of anthropology that studies how people perceive, think about, and understand the world around them.

Social Exchange Theory

Theory that seeks to understand social behavior by analyzing the costs and benefits of interacting with each other; it assumes that sex is a resource that women have and men want.

Economics

The study of the production, distribution, and consumption of goods and services, and the study of money.