Author Question: If an insurance company hires a resource in a perfectly competitive resource market and it wants to ... (Read 71 times)

ahriuashd · **on:** Jun 30, 2018

If an insurance company hires a resource in a perfectly competitive resource market and it wants to maximize profit, it will hire where marginal revenue product equals
a. the price of the resource, which equals its marginal resource cost
b. the price of the resource, which is greater than its marginal resource cost
c. the price of the resource, which is less than its marginal resource cost
d. marginal product
e. the price of the product

Question 2

In order to increase society's well-being, a process that produces a positive externality might be
a. taxed to discourage production
b. subsidized to encourage production
c. taxed to encourage production
d. subsidized to discourage production
e. provided without government intervention