Which of the Following Conditions Indicate Cost Minimization,assuming Two Inputs,labour

question 23

Multiple Choice

Which of the following conditions indicate cost minimization,assuming two inputs,labour ( L) and capital (K) ?

• A)PK ∙ MPK = PL ∙ MPL
• B)MPL = MPK
• C)MPK/PK = MPL/PL
• D)MPK/PL = MPL/PK
• E)PK = PL

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Definitions:

Structured Process

An organized and systematic approach to work or problem-solving, often involving sequential steps and established procedures.

Employee Involvement

The degree to which employees are encouraged to contribute ideas, input, and effort in decision-making processes and operational aspects of their work.

Decision Process

The series of steps taken by individuals or organizations to identify and evaluate options and make a choice among them.

Escalation of Commitment

A pattern of behavior in which individuals or groups continue to invest in a decision despite evidence of its ineffectiveness, often due to cognitive biases.