Which of the Following Conditions Is True When a Producer

question 29

Multiple Choice

Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?

• A) The MRTS is equal to the ratio of input prices.
• B) The marginal product per dollar spent on all inputs is equal.
• C) The marginal products of all inputs are equal.
• D) The MRTS is equal to the ratio of input prices, and the marginal product per dollar spent on all inputs is equal.

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Definitions:

Power Cords

Electrical cables specifically designed to connect an appliance or device to the main electricity supply, enabling it to operate.

Median Earnings

The middle value of income distribution, where half of the population earns more and half earns less.

Labor Market

The supply and demand for labor, where employers seek to hire workers, and individuals offer their work for wages.

Median Earnings

The middle value of earnings in a given demographic, geographical area, or profession, with an equal number of individuals earning more and less than this amount.