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If the Firm's Marginal Physical Product Is 8, and Its

Question 106

Multiple Choice

If the firm's marginal physical product is 8, and its handicrafts sell for $70, when a unit of labor costs $150, the firm is operating


A) short of an optimal input point.
B) at the optimum input point.
C) beyond the optimum input point.
D) There isn't enough information to determine if the input point is optimal.

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