If a firm is using a resource hired in a perfectly competitive ...

[Awilson837]

If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,
 a. more of the resource should be used
  b. less of the resource should be used
  c. the firm should pay a lower price for the resource
  d. the firm should pay a higher price for the resource
  e. the firm is using the optimal amount of the resource

Question 2

Peyton Lopez will exploit the aquifer under his ranch as long as his personal marginal __________ is __________ __________ his personal marginal __________.
 a. cost, greater than, benefit
  b. benefit, greater than, cost
  c. cost, equal to, benefit
  d. benefit, less than, cost
  e. benefit, equal to, cost

[Jayson]

Answer to Question 1

B

Answer to Question 2

B

[Awilson837]

Thanks for the timely response, appreciate it

[mjenn52]

Gracias!