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Suppose a Competitive Industry Produces Output, Q, Using Some Input

Question 14

Multiple Choice

Suppose a competitive industry produces output, Q, using some input, i, where the price of the output is PQ and the input price is Pi. Efficient use of resources requires that:


A) MRPi = MPi.
B) MRPi = Mpi/PQ.
C) MRPi = MPi PQ.
D) MRPi = Pi.

Correct Answer:

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