A purely competitive firm in the factor and product markets sells its output for $1 and pays factors Pₗ = $4 and P_c = $3. What is the profit-maximizing combination of L and C for the firm? A)8 of L and 8 of C B)4 of L and 3 of C C)5 of L and 2 of C D)6 of L and 6 of C

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The Answer of A purely competitive firm in the factor and product markets sells its output for $1 and pays factors Pₗ = $4 and P_c = $3. What is the profit-maximizing combination of L and C for the firm? A)8 of L and 8 of C B)4 of L and 3 of C C)5 of L and 2 of C D)6 of L and 6 of C

A Purely Competitive Firm in the Factor and Product Markets