The Least-Cost Rule for Firms States That in the Long

question 106

Multiple Choice

The least-cost rule for firms states that in the long run,firms will

• A)produce output at the point where ATC is minimized
• B)produce output at the point where MC is minimized
• C)minimize variable costs
• D)choose the output level with the lowest TC
• E)choose the lowest-cost input combination for any output level

---

Definitions:

Probability

A numerical measure representing the likelihood or chance of a particular event occurring, ranging from 0 to 1.

Population

Refers to the total set of observations that can be made in any given survey or experimental study.

Sample

A group within a larger population chosen for the purpose of conducting measurements, observations, or inquiries to gather data about the entire population.

Experiment

A procedure undertaken to support, refute, or validate a hypothesis, typically involving the manipulation of variables to observe the effect on some behavior or condition.