Assume That a Purely Competitive Firm Uses Two Resources, Labor

question 237

Multiple Choice

Assume that a purely competitive firm uses two resources, labor (L) and capital (C) , to produce a product. In which situation would the firm be maximizing profit? $\begin{array}{|c|c|c|c|c|}\hline & \text { MRPL } & \text { MRPC } & \text { PL } & \text { PC } \\\hline \text { A } & 20 & 40 & 60 & 80 \\\hline \mathrm{B} & 20 & 40 & 20 & 40 \\\hline \mathrm{C} & 30 & 30 & 20 & 20 \\\hline \mathrm{D} & 60 & 80 & 20 & 10 \\\hline\end{array}$

• A) A
• B) B
• C) C
• D) D