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A Purely Competitive Firm in the Factor and Product Markets

Question 91

Multiple Choice

A purely competitive firm in the factor and product markets sells its output for $1 and pays factors Pₗ = $4 and Pc = $3. What is the profit-maximizing combination of L and C for the firm? A purely competitive firm in the factor and product markets sells its output for $1 and pays factors Pₗ = $4 and P<sub>c</sub> = $3. What is the profit-maximizing combination of L and C for the firm? A) 8 of L and 8 of C B) 4 of L and 3 of C C) 5 of L and 2 of C D) 6 of L and 6 of C


A) 8 of L and 8 of C
B) 4 of L and 3 of C
C) 5 of L and 2 of C
D) 6 of L and 6 of C

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