Multiple Choice
Which of the following statements is false?
A) A firm minimizes costs by buying factors in the combination at which the MPP-to-price ratio for each is the same.
B) Marginal productivity theory states that firms in competitive or perfect product and factor markets pay factors their marginal revenue products.
C) Marginal factor cost equals the wage rate for a factor price taker.
D) The lower the elasticity of demand for the product labor produces, the higher the elasticity of demand for labor.
Correct Answer:
Verified
Correct Answer:
Verified
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