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.

Question

Quizplus · Accepted Answer

If a firm is unable to influence the price of a variable productive resource by buying more or less of it, then the firm has to pay the market price for the resource regardless of the quantity of the resource the firm uses. In this case, the marginal cost of the resource is equal to the price of the resource.

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