Asked by
Steven DeWitt
on Nov 26, 2024
Verified
If a firm is hiring variable resources D and F in perfectly competitive input markets, it will minimize the cost of producing any level of output by employing D and F in such amounts that
A) the price of each input equals its MP.
B) MP D = MP F.
C) MPd / Pd = MP F / PF .
D) MPd / PF = MPF / Pd.
Perfectly Competitive
A market structure characterized by many buyers and sellers, homogenous products, and the absence of barriers to entry or exit, leading to optimal pricing and output.
Producing Level
The quantity of goods or services that a firm decides to produce and offer to the market at a given time.
Input Markets
The markets where firms buy resources they need to produce goods and services.
- Discern the vital importance of marginal productivity in the allocation of resources and in the computation of production costs.
- Develop an understanding of the nexus between economic advantage and the policies of diminishing costs and escalating benefits in resource deployment.
Verified Answer
FC
Learning Objectives
- Discern the vital importance of marginal productivity in the allocation of resources and in the computation of production costs.
- Develop an understanding of the nexus between economic advantage and the policies of diminishing costs and escalating benefits in resource deployment.