Suppose a firm is hiring resources l and m under purely competitive conditions to produce product Y, which sells for $2 in a purely competitive market. The prices of l and m are $10 and $4 respectively. In equilibrium the MPs of l and m, respectively,
are:
A. 1 and 1.
B. 2 and 5.
C. 10 and 4.
D. 5 and 2.
Answer: D
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