Which of the Following Conditions Is True When a Producer

question 135

Multiple Choice

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

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

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Definitions:

Operating Activities

Operating activities include the primary revenue-generating activities of a business, as well as other activities that are not investing or financing activities, reflecting the company's core operations cash flow.

Comparative Balance Sheet

A financial statement that provides a snapshot of a company's assets, liabilities, and equity at two or more points in time for comparison.

Cash Dividends

Payments made by a corporation to its shareholders from its profits in the form of cash.

Prepaid Expenses

Costs paid for in advance of receiving the benefit of the service or product, such as insurance premiums or rent, which are recorded as assets until used.