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Consider the Following Production and Cost Schedule for a Firm

Question 80

Multiple Choice

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm.  Total Numb er of  Units of theF actor  Total Number of  Units of Output  Price per Unit  of Output 1020$101144$101264$101378$101484$101586$10\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Total Numb er of } \\\text { Units of theF actor }\end{array} & \begin{array} { c } \text { Total Number of } \\\text { Units of Output }\end{array} & \begin{array} { c } \text { Price per Unit } \\\text { of Output }\end{array} \\\hline 10 & 20 & \$ 10 \\\hline 11 & 44 & \$ 10 \\\hline 12 & 64 & \$ 10 \\\hline 13 & 78 & \$ 10 \\\hline 14 & 84 & \$ 10 \\\hline 15 & 86 & \$ 10 \\\hline\end{array} TABLE 13- 1
-Suppose the government decides,in the interest of "fairness," to impose a policy prohibiting factor- price differentials.The likely result would be


A) a decrease in net factor demands.
B) a horizontal factor supply curve.
C) a shortage of factors in uses with low net advantage.
D) an increase in factor mobility.
E) equilibrium in factor markets.

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