If demand is unit elastic, then a 10 percent increase in the price will lead to a 10 percent increase in quantity demanded.

The cost that a firm pays in money to hire a resource is referred to as ________ cost

A) a minimized B) a maximized C) an explicit D) an implicit E) a total

Assume a firm purchases resources a and b under purely competitive conditions and combines these resources to produce X. Product X is sold in a purely competitive market. The MPs of a and b are 6 and 3 respectively and the prices of a and b are $12 and

$6 respectively. If equilibrium exists, the price of X will be: A. $1. B. $.50. C. $2. D. $5.