FINAL EXAM 2 D. employ thecombination of resources that will produce the profit-maximizing output at theminimum cost C. always use large amounts of the most productive inputsand small amounts of the

FINAL EXAM 2 D. employ thecombination of resources that will produce the profit-maximizing output at theminimum cost C. always use large amounts of the most productive inputsand small amounts of the

$0.50

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D. employ the
combination of resources that will produce the profit-maximizing output at the
minimum cost



C. always use large amounts of the most productive inputs
and small amounts of the least productive inputs in producing its output



B. hire each input so the productivity of each is equal at
the margin



A. always use large amounts of cheap inputs and small
amounts of expensive inputs in producing its 
output



2) A firm that is motivated by self interest should:



 



D. may be either greater or less than $5



C. will be less than $5



B. will also be $5



A. will be greater than $5



1) If a firm in a purely competitive industry is confronted
with an equilibrium price of $5, its marginal revenue: