Assume a Firm Purchases Resources a and B Under Purely

question 57

Multiple Choice

Assume a firm purchases resources a and b under purely competitive conditions and combines these resources to produce X.Product X is sold in a purely competitive market.The MPs of a and b are 6 and 3 respectively and the prices of a and b are $12 and $6 respectively.If equilibrium exists,the price of X will be:

• A) $1.
• B) $.50.
• C) $2.
• D) $5.

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Definitions:

Minerals

Naturally occurring solid substances with a defined chemical composition and crystal structure, used extensively in various industries.

Intangible Assets

Non-physical assets that have value due to the rights or information they hold, such as patents, trademarks, and goodwill.

Patent

A government-granted exclusive right to an inventor, allowing them to protect their invention from being made, used, or sold by others for a certain period.

Amortized

The process of gradually reducing the cost or value of an asset, or the repayment of a debt over a period of time, through regular payments.