A Firm Is Producing with the Least-Cost Combination of Resources

question 168

Multiple Choice

A firm is producing with the least-cost combination of resources when the

• A)last dollar spent on each resource yields the same marginal product.
• B)total dollars spent on each resource are all the same.
• C)unit prices of the resources are equalized.
• D)marginal product of each of the resources is all the same.

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Definitions:

Long-Term Liabilities

Obligations or debts that a company expects to pay after one year or beyond the current business cycle.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, outlining assets, liabilities, and equity.

Vertical Analysis

A method of financial statement analysis in which line items are expressed as a percentage of a base figure within the same period.

Ford Motor Company

A multinational automaker headquartered in the United States, known for producing and selling automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand.