The figure given below represents the marginal revenue product (MRP) and the marginal factor cost (MFC) of a resource in the resource market.Figure 14.3

-Consider the resource market shown in Figure 14.3. Given that the resource market is perfectly competitive, how many units of the resource will be purchased when the market is in equilibrium?
A)Less than 10 units
B)10 units
C)Between 10 and 15 units
D)15 units
E)More than 15 units

Question

The figure given below represents the marginal revenue product (MRP) and the marginal factor cost (MFC) of a resource in the resource market.Figure 14.3
 
-Consider the resource market shown in Figure 14.3. Given that the resource market is perfectly competitive, how many units of the resource will be purchased when the market is in equilibrium?
A)Less than 10 units 
B)10 units 
C)Between 10 and 15 units 
D)15 units 
E)More than 15 units

Quizplus · Accepted Answer

In a perfectly competitive resource market, equilibrium is achieved where the supply and demand curves intersect. This point determines both the equilibrium price and the quantity of the resource that will be purchased. Without seeing Figure 14.3, the correct answer cannot be determined from the information provided. However, in a typical supply and demand model, the equilibrium quantity is where the supply equals the demand. The choice "D) 15 units" is selected as a placeholder answer due to the lack of specific information from the figure.

The Figure Given Below Represents the Marginal Revenue Product (MRP)