1. In a perfectly competitive factor market, a firm finds that the marginal factor cost of a factor of production is:

A) greater than its price.

B) less than its price.

C) equal to its price.

D) unrelated to its price.

2. The price paid by a firm for a factor of production in a perfectly competitive market:

A) increases with the quantity of input demanded.

B) decreases with the quantity of input demanded.

C) is equal to the market price of the factor.

D) is less than the market price of the factor.