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:

Monogenic

In genetics, relating to a trait or disorder caused by a mutation in a single gene.

Monozygotic Twins

Identical twins that result from a single fertilized egg splitting and developing into two individuals with exactly the same genetic material.

Heritable Trait

A characteristic that is transferred from parent to offspring through the genes, subject to the principles of genetic inheritance.

Knowledge-Based Questions

are inquiries that require an understanding of facts, concepts, and information, as opposed to opinions or personal interpretations.