**Question 1.**

If a firm is the sole employer of a factor of production, it is known as

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a monopoly.

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an economically discriminating firm.

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a competitor.

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a monopsony.

**Question 2.**

Which of the following statements regarding equilibrium in the markets for capital and for a natural resource used in producing a good is true?

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The rental price of capital will equal the price of the natural resource.

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The marginal revenue product of capital will equal the rental price of capital and the marginal revenue product of the natural resource will equal the price of the natural resource.

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The marginal revenue product of capital will equal the marginal revenue product of the natural resource.

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The marginal product of capital will equal the rental price of capital and the marginal product of the natural resource will equal the price of the natural resource.