If a firm hires a resource in a perfectly competitive resource market,
a. it must also be a price taker in the product market
b. it must also be a monopolist in the product market
c. it faces a horizontal marginal resource cost curve
d. it faces an upward-sloping marginal resource cost curve
e. it faces a downward-sloping marginal resource cost curve
C
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If currency outside of banks is $800 billion; traveler's checks are $10 billion; checkable deposits owned by individuals and businesses are $700 billion; savings deposits are $4,000 billion; small time deposits are $1,000 billion; and money market
funds and other deposits are $800 billion, then M2 equals ________ billion. A) $7,310 B) $5,800 C) $710 D) $2,510 E) $1,510
Comment on the following statement: "For a monopolist, marginal revenue is always equal to price."
What will be an ideal response?