A Firm Faces Competitive Markets for Its Inputs and Its

question 24

Multiple Choice

A firm faces competitive markets for its inputs and its output.At the profit-maximizing level of output,its marginal cost is $10 and the wage paid is $2.If the MPL = L^-0.5,what is the marginal product of the firm?

• A) 0.10
• B) 0.2
• C) 0.35
• D) 5

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Definitions:

Pinus

A genus of trees in the pine family, known for having needle-like leaves and producing cones.

Conifers

A group of cone-bearing plants that are mostly evergreens and include pines, firs, and spruces.

Sepal

One of the outermost parts of a flower, usually leaflike in appearance, that protects the flower as a bud.

Flower Bud

A flower bud is a small embryonic flower, encased in protective scales, which develops into a mature flower upon growth and favorable conditions.