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    Economics Study Set 10
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    Exam 26: Factor Markets With Emphasis on the Labor Market
  5. Question
    If MPP<sub>X</sub>/P<sub>X</sub> > MPP<sub>Y</sub>/P<sub>Y</sub>, the Firm Should Buy
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If MPPX/PX > MPPY/PY, the Firm Should Buy

Question 56

Question 56

Multiple Choice

If MPPX/PX > MPPY/PY, the firm should buy


A) more of factor X and less of factor Y.
B) less of factor X and more of factor Y.
C) more of factor Y and the same amount of factor X.
D) less of factor X and factor Y.
E) more of factor X and factor Y.

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