When a Firm Uses Inputs in a Fixed Proportion, the Cost

question 30

Multiple Choice

When a firm uses inputs in a fixed proportion, the cost minimizing combination of capital and labor

• A)occurs when the firm uses either all workers or all machines.
• B)occurs when the firm uses equal amounts of workers and machines.
• C)occurs where the ratio of the marginal productivities equals the ratio of the input prices.
• D)occurs at the corner point on the isoquant.

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Definitions:

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Pertaining to basic or fundamental processes that do not involve complex cognitive operations.

Sky

The expanse of air over the Earth, visible from the ground, characterized by blue color during the day and darkness or stars at night.

Reversible Pattern

A visual or conceptual pattern that can be perceived in more than one way, often creating an optical illusion or a shift in perspective.

Blue

A primary color in the visible spectrum, perceived when light has a dominant wavelength of roughly 450-495 nanometers.