Multiple Choice
If all firms in an industry are price takers in the market for resource A,then:
A) the price of resource A will increase if a single firm increases its output.
B) more efficient firms will produce at levels where the marginal revenue product of the last unit of resource A is higher.
C) less efficient firms will produce where the marginal revenue product of the last unit of resource A is higher.
D) the marginal product of the last unit of resource A will be the same in all firms in the industry.
Correct Answer:
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