A Manager Can Minimize Production Costs by Operating at a Point

question 35

Multiple Choice

A manager can minimize production costs by operating at a point where:

• A) the isoquant is tangent to the isocost line
• B) the isoquant is equal to zero
• C) the isoquant is tangent to the origin
• D) not enough information to know

---

Definitions:

Small Stocks

Shares of companies with relatively small market capitalization.

Canadian Treasury Bills

Short-term government securities issued by the Canadian government, featuring a maturity of less than one year and sold at a discount.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often associated with the level of risk involved.