Suppose a Factor Price Taker Purchases One Unit of Factor

Multiple Choice

Suppose a factor price taker purchases one unit of factor X for $10. At what price would it purchase the second unit, and what would marginal factor cost (MFC) equal?

A) It would purchase the second unit for $10, and MFC equals $10.
B) There is not enough information to know what it would purchase the second unit for, and thus we do not know what MFC equals.
C) It would purchase the second unit for $10, but there is not enough information to know what MFC equals.
D) There is not enough information to know what it would purchase the second unit for, but MFC equals $10.