The Expansion Path Shows

question 95

Multiple Choice

The expansion path shows

• A) how input prices change as the firm's output level changes.
• B) how the marginal products change as the firm's output level changes.
• C) how the cost-minimizing input choices change as the firm's output level changes.
• D) how the profit-maximizing input choices change as the firm's output level changes.
• E) how the cost-minimizing input prices change as the firm's output level changes.

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Definitions:

Apparent Authority

The impression given to third parties that an agent is authorized to act on behalf of a principal, even if such authority has not been formally granted.

Proper Notification

The act of informing someone through legally accepted or specified means.

Doctrine

A principle or body of principles presented for acceptance or belief, as by a religious, philosophical, scientific, or political group; policy.

Third-Party Estoppel

A legal principle that prevents a party from asserting or denying a fact due to another's act, when the third party has relied upon that act or representation.