If a Firm Is Hiring Variable Resources D and F

question 217

Multiple Choice

If a firm is hiring variable resources D and F in perfectly competitive input markets, it will minimize the cost of producing any level of output by employing D and F in such amounts that

• A)the price of each input equals its MP.
• B)MP D = MP F.
• C)MP_d / P_d = MP F / PF .
• D)MP_d / PF = MPF / P_d.

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Definitions:

Planning Beyond

A strategic approach focusing on setting long-term goals and objectives beyond the usual planning horizon.

One Year

A period consisting of 12 consecutive months or 365 days, used as a standard time measurement for various financial calculations.

Sales Forecasts

Predictions regarding the amount of products or services a business expects to sell over a certain period.