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:

Recycling

The process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products.

Chemical Change

A process that transforms substances into different substances through the rearrangement of atoms.

Kinetic Energy

The energy that an object possesses due to its motion, dependent on the object's mass and velocity.

Ions

Atoms or molecules with a net electric charge due to the loss or gain of one or more electrons.