In a Two-Input Model You Can Tell That a Non-Optimal

question 32

Multiple Choice

In a two-input model you can tell that a non-optimal short-run production decision is being made if

• A) all decisions in the short run are nonoptimal
• B) all decisions in the short run are optimal
• C) the rate of technical substitution is equal to the ratio of the input prices
• D) the rate of technical substitution is not equal to the ratio of the input prices

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