A Firm's Optimal Input Proportions May Change If

question 30

Multiple Choice

A firm's optimal input proportions may change if

• A)input prices change.
• B)the relative marginal productivities of the inputs change.
• C)the firm's optimal output level changes.
• D)All of the above are correct.

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Definitions:

LIFO Method

Last In, First Out method, an inventory costing method where the last items purchased are the first ones sold.

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by a physical count or by applying the cost flow assumption.

Specific Invoice Method

A method of inventory cost calculation that identifies and uses the actual cost of each specific item sold.

High-Cost Goods

High-cost goods are items that require a considerable amount of money to purchase due to their quality, rarity, or other factors.