If a Firm Is Unable to Influence the Price of a Variable

question 104

Multiple Choice

If a firm is unable to influence the price of a variable productive resource by buying more or less of it,then the marginal cost of the resource is equal to the:

• A) price of the resource.
• B) marginal product of the resource.
• C) price of a unit of the firm's output.
• D) minimum average cost of producing the product.

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Definitions:

General Partners

Individuals who take part in the management and are personally liable for the debts of a partnership.

Limited Partnership

A partnership arrangement with two types of partners: general partners, who manage the business and are personally liable for its debts, and limited partners, whose liability is limited to their investment in the partnership.

Fraud Suits

Legal actions initiated due to accusations of deceit or intentional misinformation to gain a dishonest advantage.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, contributing to global warming and climate change.