The Rule for the Optimal Use of Any Input Says

question 36

Multiple Choice

The rule for the optimal use of any input says that

• A)when MRP is less than price, it pays to expand resource use.
• B)when MRP is greater than price, it pays to expand resource use.
• C)when MRP equals price, resource use should be cut back.
• D)resources should be used only if MRP exceeds price.

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Definitions:

Limited Liability Partnerships

A business structure that allows partners to have limited liabilities, which means they are not personally liable for the debts of the business.

Portfolio Composition

The breakdown of assets within an investment portfolio, classified by type, sector, risk, or other criteria.

Temporary Misalignments

Short-term discrepancies between the prices or values of related financial instruments or market sectors that are expected to correct over time.

Arbitrage Strategy

An investment strategy aiming to profit from price differences of the same asset across different markets without market risk.