In the Long Run, a Firm Seeks the Combination of Two

question 164

Multiple Choice

In the long run, a firm seeks the combination of two factors a and b such that:

• A) MPₐ/Pₐ = MPb/Pb.
• B) MPₐ/Pₐ < MPb/Pb.
• C) MPₐ/Pₐ > MPb/Pb.
• D) MPₐ/MPb < Pₐ/Pb.

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Definitions:

Discretionary Instrument

A tool or policy allowing for the exercise of judgment or choice by its user, often seen in legal and financial contexts.

Predictive Score

A statistical measure or model used to estimate the likelihood of a particular outcome based on current or past data.

Actus Reus

The physical act of committing a crime, as opposed to the mental state or intent behind the act, which is known as mens rea.

Premeditation

The act of planning or thinking about an action, especially a harmful one, beforehand.