Suppose a Firm Is Hiring Resources L and M Under

question 209

Multiple Choice

Suppose a firm is hiring resources l and m under purely competitive conditions to produce product Y, which sells for $2 in a purely competitive market. The prices of l and m are $10 and $4, respectively. In equilibrium, the MPs of l and m, respectively, are

• A) 1 and 1.
• B) 2 and 5.
• C) 10 and 4.
• D) 5 and 2.

---

Definitions:

Porosity

Refers to the measure of void spaces in a material, indicating how porous it is.

Clay

A natural, earthy material composed of fine minerals with a grain size of less than 2 micrometers, known for its plasticity when wet and usefulness in ceramics and construction.

Soil Type

A classification based on the physical characteristics of the soil, including texture, fertility, and composition.

Loam

Loam is a fertile soil type that is a balanced mixture of sand, silt, and clay, known for its excellent moisture retention and aeration qualities, suited for agricultural use.