A Firm Achieves Least Cost in Production by Substituting Factors

question 51

Multiple Choice

A firm achieves least cost in production by substituting factors until:

• A)their factor prices are equal.
• B)their marginal products are each equal to their factor prices.
• C)their marginal products are each zero.
• D)the ratio of their marginal products equals the ratio of their factor prices.
• E)their marginal products are equal.

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Definitions:

Intervening Events

Events that occur between the initial act and the final outcome that may affect the outcome or legal responsibilities.

Defendant's Negligent

Refers to a situation where a defendant in a legal case failed to exercise a reasonable standard of care, leading to harm or damage.

Reasonable Blind Person

A hypothetical standard used in legal contexts to assess accessibility or accommodations required for blind individuals to ensure equal opportunities.

Standard of Care

The level of competence, diligence, and prudence that a reasonable person would exercise in similar circumstances, often used in legal and medical contexts.