A Firm Increases Its Purchases of a Factor of Production

question 1

Multiple Choice

A firm increases its purchases of a factor of production in a perfectly competitive market from 10 units to 11 units.If the market price of the factor is $20 per unit, the marginal factor cost for the eleventh unit is:

• A) $10.
• B) $20.
• C) $200.
• D) $220.

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Definitions:

Stirrup

A small U-shaped bone in the middle ear that transmits sound vibrations from the anvil to the cochlea. Alternatively, it refers to a device attached to the saddle in horse riding, supporting the rider's foot.

Frequency Theory

A theory in hearing that suggests the perception of pitch is related to the rate at which the entire basilar membrane vibrates, indicating that the frequency of the sound wave is mimicked by the firing rate of the auditory nerve.

Basilar Membrane

A structure in the cochlea of the inner ear that plays a critical role in sound perception, vibrating in response to sound and contributing to the separation of different frequencies for auditory processing.

Auditory Nerve

The cranial nerve that transmits sound information from the inner ear to the brain.