If the Inputs to a Production Process Are Perfect Substitutes

question 75

True/False

If the inputs to a production process are perfect substitutes and the marginal rate of technical substitution is equal to the ratio of the prices of the two inputs,the firm can choose from a virtually infinite array of combinations of the two inputs to minimize the costs of producing a given level of output.

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Definitions:

Frozen Yogurt

A dessert made from yogurt and sometimes other dairy products, frozen to a soft consistency, often served as a healthier alternative to ice cream.

Price

The cash amount presumed, required, or allocated in remuneration for something.

Supply Curve

The supply curve illustrates the relationship between the price of a good or service and the quantity of that good or service that a seller is willing and able to supply.

Demand Curve

An illustrated chart demonstrating how the price of an item correlates with consumer demand for it.