Firms Will Continue to Increase Their Purchase of Factor Inputs

question 23

Multiple Choice

Firms will continue to increase their purchase of factor inputs as long as ________.

• A)the marginal product of a given factor is greater than its real factor price
• B)the marginal cost of a given factor is lower than its marginal product
• C)their total revenues are greater than their total costs
• D)all of the above
• E)none of the above

---

Definitions:

Intentional

Done with purpose or deliberation; not accidental or unintentional.

Outrageous

Describes actions or behaviors that are shocking, extreme, and exceed the bounds of decency in a societal context.

Law of Torts

A branch of civil law that deals with legal liabilities, obligations, and damages arising from wrongful acts not involving contracts.

Statutory Law

Law enacted by a legislative body, such as a Congress or Parliament, that specifies and mandates behaviors, procedures, and consequences within its jurisdiction.