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United StatesMicroeconomicsQuick questions

Unit 5: Factor Markets

Quick questions on Profit-Maximizing Behavior in Perfectly Competitive Factor Markets - AP Microeconomics Topic 5.3

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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State the hiring rule for a firm in a competitive labor market. [1 point]
What is q2?
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A firm has marginal product per dollar of 3 for labor and 5 for capital. State which input it should use more of. [1 point]

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