If a Firm Is Using a Factor of Production from a Perfectly

question 172

Multiple Choice

If a firm is using a factor of production from a perfectly competitive market at a quantity of the factor where MFC = MRP, then profit:

• A) is maximized.
• B) can be increased by using less of the factor.
• C) can be increased by using more of the factor.
• D) can be increased by decreasing the factor price.

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Definitions:

Compound

A substance formed from two or more elements chemically united in fixed proportions, or a complex entity composed of several parts.

Atomic

In the context of logic, atomic refers to propositions that cannot be broken down into simpler components, functioning as the basic, indivisible units of meaning.

Symbolize

To represent or stand for something else, especially through symbols or symbolic actions.

Quantifier

A logical term that specifies the quantity of specimens in the domain of discourse that satisfy a conditional statement.