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:

Independent Self

A psychological concept referring to individuals who define themselves in terms of their personal attributes, achievements, and goals.

Autonomous Person

An individual who acts independently or self-sufficiently, often making decisions based on personal beliefs and values.

Group Goals

Objectives or outcomes that a group aims to achieve collectively, which can influence the direction and dynamics of group activities and interactions.

Emotionality

The observable behavioral and physiological component of emotion; refers to an individual's intensity of emotional reactions.