Efficient Use of Two Inputs in the Production Process Will

question 36

Multiple Choice

Efficient use of two inputs in the production process will depend on:

• A) prices of both inputs
• B) scarcity
• C) prices and productivity of both inputs
• D) productivity of both inputs

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Definitions:

Demand Schedule

A diagram indicating the volume of goods or services that purchasers intend and can afford to buy across a range of prices.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product that is identical across suppliers.

Profit-Maximizing Condition

A state where a firm's marginal cost is equal to its marginal revenue, leading to the highest possible profit.

Resource Use

Involves the allocation and utilization of resources such as capital, labor, and materials efficiently in the production of goods and services.