If There Are Two Factors Used in Producing a Good

question 50

Multiple Choice

If there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when

• A)the MPP of the first factor divided by its price is equal to the MPP of the second factor divided by its price.
• B)the MPP of the first factor multiplied by its price is equal to the MPP of the second factor minus its price.
• C)the MPP of the first factor divided by the price of the second factor is equal to the MPP of the second factor divided by the price of the first factor.
• D)the MPP of the second factor minus the MPP of the first factor is equal to the price of the second factor minus the price of the first factor.

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Definitions:

Higher-order Needs

Advanced human needs in Maslow's hierarchy, including esteem and self-actualization, beyond basic physiological and safety requirements.

Esteem

A respect and admiration, typically for a person, that results from their achievements or qualities.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone. It is often viewed as the pinnacle of psychological development.

Hawthorne Studies

A series of studies conducted in the early 20th century that examined how different work conditions affected employee productivity and concluded that workers were more motivated by attention and social factors than physical conditions.