When the Factor Market Is Purely Competitive, the Firm's Average

Multiple Choice

When the factor market is purely competitive, the firm's average expenditure curve for a factor of production is:

A) upward sloping and to the right of the marginal expenditure curve.
B) downward sloping and to the right of the marginal expenditure curve.
C) identical to the marginal expenditure curve.
D) downward sloping and to the left of the marginal expenditure curve.