For a given firm, marginal factor cost is the same dollar amount no matter what quantity of a factor it purchases. This firm is a

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Marginal factor cost is the additional cost a firm incurs by purchasing one more unit of a factor. Since the given firm faces the same marginal factor cost no matter how much of the factor it purchases, it suggests that the price of the factor is fixed and the firm is a price taker in the factor market. Hence, the best choice is C, which indicates that the firm is a factor price taker.

For a Given Firm, Marginal Factor Cost Is the Same