Suppose a Firm Uses Land, Labor, and Capital for Its

Multiple Choice

Suppose a firm uses land, labor, and capital for its production process. If it is renting the equilibrium quantity of all three factors of production, then which of the following conditions will be true?

A) Marginal product from the last dollar spent on land = Marginal product from the last dollar spent on labor > Marginal product from the last dollar spent on capital
B) Marginal product from the last dollar spent on land > Marginal product from the last dollar spent on labor > Marginal product from the last dollar spent on capital
C) Marginal product from the last dollar spent on land > Marginal product from the last dollar spent on labor = Marginal product from the last dollar spent on capital
D) Marginal product from the last dollar spent on land = Marginal product from the last dollar spent on labor = Marginal product from the last dollar spent on capital