Consider a perfectly competitive firm that can raise its output by 2 units by hiring an additional unit of capital. If the cost of hiring this additional unit of capital is $4 and the market price of the good is $1, the firm will certainly hire this unit of capital. [Hint: MRP = MP X MR]
a. True
b. False
Indicate whether the statement is true or false
False
Economics
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Methods of rent seeking include which of the following? I. Buying a monopoly II. Creating a monopoly III. Price discrimination
A) I and II B) I and III C) II and III D) III only
Economics
Refer to Figure 10-9. If the consumer has $240 to spend on DVDs and CDs, what is the price of a DVD if the budget constraint is BC1?
A) $10 B) $20 C) $24 D) $40
Economics