Which of the Following Is the Correct Statement of the Marginal

question 134

Multiple Choice

Which of the following is the correct statement of the marginal rule for optimal input proportions? The input proportion is optimal when

• A) \( \mathrm{P}_{\mathrm{A}} \) = \( \mathrm{P}_{\mathrm{B}} \) .
• B) MP \( \mathrm{P}_{\mathrm{A}} \)= MP \( \mathrm{P}_{\mathrm{A}} \) /MP \( \mathrm{P}_{\mathrm{B}} \) . .
• C) \( \mathrm{P}_{\mathrm{A}} \)× MP \( \mathrm{P}_{\mathrm{A}} \)= \( \mathrm{P}_{\mathrm{A}} \) /MP \( \mathrm{P}_{\mathrm{B}} \) . × MP \( \mathrm{P}_{\mathrm{A}} \) /MP \( \mathrm{P}_{\mathrm{B}} \) . .
• D) \( \mathrm{P}_{\mathrm{A}} \) / \( \mathrm{P}_{\mathrm{A}} \) /MP \( \mathrm{P}_{\mathrm{B}} \) .= MP \( \mathrm{P}_{\mathrm{A}} \) /MP \( \mathrm{P}_{\mathrm{B}} \) .

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Definitions:

Compounded Quarterly

Interest calculated and added to the principal every quarter (three months), which then accrues additional interest in subsequent quarters.

Economic Advantage

The benefit gained by making a decision that results in the optimal utilization of resources, leading to a better outcome compared to other alternative decisions.

Residential Building Lot

A parcel of land designated for the construction of a single-family home or multiple residential units.

Insurance Benefit

A payment or service provided by an insurance company to the policyholder or a designated recipient under the terms of an insurance policy.