A Firm Uses Two Inputs, a and B

question 95

Multiple Choice

A firm uses two inputs, A and B. At its optimal choice of input proportions,

• A)MRP of A = MRP of B.
• B)MRP _A \P _A = MRP _B \P _B .
• C)MPP of A = MPP of B.
• D)All of the responses are correct.

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Definitions:

Lattes

Espresso-based coffee drinks that combine espresso with steamed milk, often served in cafes and coffee shops.

Muffins

Small, baked goods often sweetened and available in various flavors, serving as a quick breakfast or snack option.

Price

The amount of money required to purchase a good, service, or resource.