If There Are Two Factors Used in Producing a Good

question 168

Multiple Choice

If there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when

• A)the MPP of the first factor divided by its price is equal to the MPP of the second factor divided by its price.
• B)the MPP of the first factor multiplied by its price is equal to the MPP of the second factor minus its price.
• C)the MPP of the first factor divided by the price of the second factor is equal to the MPP of the second factor divided by the price of the first factor.
• D)the MPP of the second factor minus the MPP of the first factor is equal to the price of the second factor minus the price of the first factor.
• E)none of the above

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Definitions:

UPA

The Uniform Partnership Act (UPA) is a set of laws adopted by many states in the U.S. to govern the operation of partnerships and the relationship between partners.

Partnership Assets

The resources and property owned by a partnership that are used for conducting its business activities.

Liabilities Priority

The order in which obligations or debts of a company or individual are to be paid if there are insufficient assets to pay all liabilities in full.

Fraudulent Act

refers to any deliberate deception intended to secure an unfair or unlawful gain, or to deprive a victim of a legal right.