A Cost-Minimizing Firm Using Two Inputs, X and Y, Will

question 118

Multiple Choice

A cost-minimizing firm using two inputs, x and y, will employ inputs so that

• A)MPx = MPy.
• B)Px / MPy = Py / MPx.
• C)MPx / Px = MPy / Py.
• D)Px = Py.

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Definitions:

Debt

Money owed by one party to another under an agreement to repay borrowed funds or provided goods/services.

Profit

Profit represents the financial gains obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Breach Contract

A failure to perform any term of a contract, written or oral, without a legitimate legal excuse, which allows the other party to seek compensation.

Reasonable Care

A legal standard requiring individuals to act with the caution and attentiveness that a prudent person would under similar circumstances.