Suppose a Firm Is Hiring Resources L and M Under

question 154

Multiple Choice

Suppose a firm is hiring resources l and m under purely competitive conditions to produce product Y, which sells for $2 in a purely competitive market. The prices of l and m are $10 and $4, respectively. In equilibrium, the MPs of l and m, respectively, are

• A)1 and 1.
• B)2 and 5.
• C)10 and 4.
• D)5 and 2.

---

Definitions:

French System

A reference to the legal system in France, characterized by civil law traditions and codified legal structures.

Civil Law

A legal system based on codified laws and principles, as opposed to common law, which is based on precedent and judicial decisions.

Codified System

A system where laws and regulations are organized and written down into a systematic code or collection.

Common Law

A body of legal precedents derived from judicial decisions, as opposed to statutes or written laws enacted by legislature.