When Factor Markets Are Competitive, It Always Pays a Profit-Maximizing

question 39

Multiple Choice

When factor markets are competitive, it always pays a profit-maximizing firm to

• A)use more of the factor.
• B)bid very low prices for inputs.
• C)reduce the use of all inputs.
• D)use that quantity of input that makes MRP equal to the price of the input.

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Definitions:

Special Journals

Accounting journals designed for recording a specific type of transaction in a more efficient manner, such as sales or purchases journals.