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Firms Will Continue to Increase Their Purchase of Factor Inputs

Question 23

Multiple Choice

Firms will continue to increase their purchase of factor inputs as long as ________.


A) the marginal product of a given factor is greater than its real factor price
B) the marginal cost of a given factor is lower than its marginal product
C) their total revenues are greater than their total costs
D) all of the above
E) none of the above

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