If a firm hires a resource in a perfectly competitive


If a firm hires a resource in a perfectly competitive resource market 

A. it must also be a price taker in the product market

B. it must also be a monopolist in the product market 

C. it faces a horizontal marginal resource cost curve 

D. it faces an upward-sloping marginal resource cost curve 

E. It faces a downward-sloping marginal resource cost curve 

 

An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause 

A. more labor to be employed because its marginal revenue product has fallen 

B. an increase in insurance premiums 

C. fewer workers to be employed because their marginal revenue product has decreased 

D. more workers to be employed because their marginal revenue product has increased 

E. fewer workers to be employed because their marginal revenue product has increased. 

 

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Microeconomics: If a firm hires a resource in a perfectly competitive
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