If a Firm Is Using Optimal Input Proportions, It Is

question 41

True/False

If a firm is using optimal input proportions, it is minimizing its costs.

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales and must be paid regardless of the business activity level.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials, energy usage, or labor directly associated with production.

Flash Frozen

A method of freezing food quickly at extremely low temperatures to preserve its quality, nutrients, and taste.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and equipment leases.