The Condition That Requires MRTS for Each Input Pair to Equal

question 126

Multiple Choice

The condition that requires MRTS for each input pair to equal the ratio of their marginal costs is known as ________ efficiency, and the condition that requires MRS for each output pair to equal their output price ratio is known as ________ efficiency.

• A) economic; market
• B) micro; macro
• C) cost; revenue
• D) technical; output

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Definitions:

Perpetual Inventory

A system of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Non-Cancellable Fixed Purchase Contract

A legally binding agreement to buy a specific quantity of goods or services at predetermined prices, where the contract cannot be cancelled without a breach.

Accrued Loss

A loss that has occurred but has not yet been recorded in the accounts through the normal accounting process, often recognized through adjusting entries.

Major Categories

General classifications used in various contexts, such as financial accounting, to organize items or concepts into distinct groups based on similar characteristics.