Costs Are Clearly Minimized for a Given Level of Output

question 16

Multiple Choice

Costs are clearly minimized for a given level of output as long as the firm

• A) uses inputs that do not exhibit declining productivity.
• B) pays the same price for all of its inputs.
• C) is not able to increase output by substituting a dollar's worth of input A for a dollar's worth of input B, or vice versa.
• D) can increase output without increasing its cost.
• E) equates the marginal products of both inputs A and B.