Multiple Choice
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) $0.50.
C) $2.
D) $5.
Correct Answer:
Verified
Correct Answer:
Verified
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