A firm operating in purely competitive product and resource markets uses three resources, A, B, and C, whose prices and productivities at current output levels are given in the table. To achieve an optimal factor mix for its current output, the firm should employ more
A)A and B and less C.
B)A and B and C.
C)A and C and less B.
D)B and less A and C.

Question

A firm operating in purely competitive product and resource markets uses three resources, A, B, and C, whose prices and productivities at current output levels are given in the table.  To achieve an optimal factor mix for its current output, the firm should employ more
A)A and B and less C. 
B)A and B and C. 
C)A and C and less B. 
D)B and less A and C.

Quizplus · Accepted Answer

The Answer of A firm operating in purely competitive product and resource markets uses three resources, A, B, and C, whose prices and productivities at current output levels are given in the table.  To achieve an optimal factor mix for its current output, the firm should employ more
A)A and B and less C. 
B)A and B and C. 
C)A and C and less B. 
D)B and less A and C.

A Firm Operating in Purely Competitive Product and Resource Markets