Identify the Incorrect Answer

question 26

Multiple Choice

Identify the incorrect answer.If the price of each of the two factors used in production is a constant, then the least-cost principle is satisfied when the:

• A)marginal product per dollar received from the last dollar of expenditure is the same for every productive factor.
• B)slope of the equal-product curve is equal to the slope of the equal-cost line.
• C)marginal product per dollar of each factor is equal to the inverse of the marginal cost.
• D)ratio of the marginal products of the two factors equals the ratio of their prices.
• E)equal-product curve cuts across an equal-cost line from above.

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