A purely competitive firm in the factor and product markets sells its output for $1 and pays factors PL = $4 and PC = $3. What is the profit-maximizing combination of L and C for the firm?
A. 8 of L and 8 of C
B. 4 of L and 3 of C
C. 5 of L and 2 of C
D. 6 of L and 6 of C
D. 6 of L and 6 of C
Economics
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Which of the following is TRUE regarding money market mutual funds?
I. Money market mutual funds buy highly liquid assets like Treasury bills. II. Shareholders can obtain loans from money market mutual funds. A) I only B) II only C) both I and II D) neither I nor II
Economics
In the model of monopolistic competition, compared to a firm with a higher marginal cost, a firm with a lower marginal cost will set a ________ price, produce ________ output, and earn ________ profits
A) lower; more; more B) higher; more; more C) lower; less; less D) higher; less; less E) higher; less; more
Economics