If a Firm Is Using a Resource Hired in a Perfectly

question 117

Multiple Choice

If a firm is using a resource hired in a perfectly competitive market, and if the marginal resource cost is less than its marginal revenue product,

• A) more of the resource should be used.
• B) less of the resource should be used.
• C) the firm should pay a lower price for the resource.
• D) the firm should pay a higher price for the resource.
• E) the firm is using the optimal amount of the resource.

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Definitions:

TN Visa

A type of visa under the North American Free Trade Agreement (NAFTA) that allows citizens of Canada and Mexico to work in the United States in prearranged business activities for U.S. or foreign employers.

NAFTA

North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that eliminated most tariffs and trade barriers between the countries.

Qualified Canadian Professionals

Individuals in Canada who possess the necessary skills, credentials, and experience to meet the standards of their profession.

Pay System

A structured approach to compensating employees, often involving scales based on job roles, experience, performance, and market factors.