A Firm Is Operating with an Optimal Combination of Inputs

question 185

Multiple Choice

A firm is operating with an optimal combination of inputs.Suddenly the price of one input rises.The firm should

• A)buy less of that input and more of the other input.
• B)change its input mix so that the marginal physical product of the input whose price has risen falls and the marginal physical product of the other input rises.
• C)buy less of whichever input now has the highest money price and more of the other input.
• D)reduce its output.

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Definitions:

Combo Box

A graphical user interface element that combines a dropdown list or menu with a single-line textbox, allowing users to select an item from the list or enter a new choice.

Lookup Field

In databases, a field that allows the user to select a value from another table or list, enabling a connection between the data.

Multivalue Lookup Field

A type of database field that can store multiple references or values in a single record, often used to link records in different tables.

Candidates

Individuals or options from which a choice can be made, often used in the context of elections or selection processes.