If a Firm Is Using a Resource Hired in a Perfectly

question 117

Multiple Choice

If a firm is using a resource hired in a perfectly competitive market, and if the marginal resource cost is less than its marginal revenue product,

• A) more of the resource should be used.
• B) less of the resource should be used.
• C) the firm should pay a lower price for the resource.
• D) the firm should pay a higher price for the resource.
• E) the firm is using the optimal amount of the resource.

---

Definitions:

Active Revolt

A direct and overt action by a group or individual aimed at challenging and overthrowing an established authority or system.

Technological Innovations

The introduction of new technologies or the improvement of existing ones to solve problems or enhance capabilities.

Marx

Karl Marx, a 19th-century philosopher, political economist, and revolutionary known for his theories about capitalism and communism.

Differentiation

The process by which entities or systems become more complex, diverse, or distinct from each other or their previous state.