In a perfectly competitive market, marginal resource cost faced by any one firm:A.is fixed, because any one firm is too small to influence the price of the factor.B.decreases as the level of output by the firm decreases, since the firm uses less of the resource.C.is fixed, but is unrelated to the price of the factor.D.increases as the level of output by the firm decreases, since the firm uses less of the resource.E.is fixed, because the price of a factor is unchangeable.

Multiple Choice QuestionWhat is marginal resource cost?Multiple choice question.The change in a firm's total revenue when it employs one additional unit of a resource.The change in quantity demanded of a resource that results from a change in its relative cost.The additional output produced when one additional unit of a resource is employed.The amount that each additional unit of a resource adds to the firm's total resource cost.

Multiple Choice QuestionThe imperfect competitor's relative reluctance to employ more resources and produce more output when resource prices fall reflects its Blank______.Multiple choice question.falling marginal coststendency to restrict output in the product marketrising marginal costsmarginal revenue first rising and then falling

Multiple Choice QuestionWhich of the following is true about the marginal productivity of any resource?Multiple choice question.It will decrease with the quantities of other resources used with itIt will vary with the quantities of other resources used with itIt will increase with the quantities of other resources used with itIt will stay constant with the quantities of other resources used with it

Multiple Choice QuestionThe resource demand curve of a purely competitive seller is downward sloping because the marginal product of the resource Blank______, whereas the resource demand curve of an imperfectly competitive sellers is downward sloping because the marginal product diminishes and Blank______.Multiple choice question.diminishes; product price falls as output is increasedincreases; product price rises as output is increaseddiminishes; product price falls as output is decreasedincreases; product price rises as output is decreased

At the efficient scale of production,Group of answer choicesmarginal cost must be at a minimum.marginal cost must be rising.marginal cost should be falling.marginal cost must be constant.