Which of the Following Situations Is One in Which a Least-Cost

question 100

Multiple Choice

Which of the following situations is one in which a least-cost decision would be used?

• A) Deciding whether to replace existing machinery or keep the old
• B) Deciding whether to buy a new delivery truck
• C) Deciding which of three pieces of safety equipment should be purchased in order to comply with state regulations
• D) Deciding whether to invest in a new warehouse or an updated computer system

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Definitions:

Income

Money received, especially on a regular basis, for work or through investments.

Engel Curve

A graph that illustrates how household expenditure on a particular good or service varies with income.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.

Quantity Demanded

The specific amount of a good or service that consumers are willing to purchase at a given price point, at any given moment.