A Firm Obeys the Least-Cost Rule for Factors X and Y

question 179

Multiple Choice

A firm obeys the least-cost rule for factors X and Y by equating

• A)MRPx to MRPy.
• B)MPPx/Px to MPPy/Py.
• C)Px/MPPx to Py/MPPy.
• D)MFCx to MFCy.

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Definitions:

Decrease Assets

The reduction in the value or amount of the resources owned by a company, which can result from sales, disposal, or depreciation.

Accounting Equation

The fundamental equation underpinning the double-entry bookkeeping system: Assets = Liabilities + Equity.

Liabilities

The financial liabilities a firm has towards other parties, necessitating reimbursement through the provision of economic gains over a specified duration.

Increase Assets

An action or transaction that results in a rise in the total value of assets owned by an individual or entity.