Assume a Firm Purchases Resources a and B Under Purely

question 305

Multiple Choice

Assume a firm purchases resources a and b under purely competitive conditions and combines these resources to produce X. Product X is sold in a purely competitive market. The MPs of a and b are 12 and 6, respectively, and the prices of a and b are $6 and $3, respectively. If profit-maximizing equilibrium exists, the price of X will be

• A)$1.
• B)$2.
• C)$0.50.
• D)$5.

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Definitions:

Approval

the act of officially agreeing to something or recognizing it as acceptable, valid, or conforming to a standard.

Socialization

The process by which individuals learn and adopt the norms, values, customs, and behaviors appropriate to their society or social group.

Ends-Based Thinking

is a moral reasoning approach that focuses on the outcomes or consequences of actions to determine their ethicality.

Religious

Pertaining to the belief in and worship of a god or gods, a specific system of belief and worship involving a code of ethics, a value orientation emphasizing spiritual peace.