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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Definitions:

Leased Assets

Items of property or equipment that a company or individual rents under a lease agreement, rather than owns outright.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Operating Activities

Activities that relate to the day-to-day functions of a company involved in producing and selling its goods and services.

Cash Flow From Financing

This represents the net flows of cash that are used to fund a company, including debt, equity, and dividend payments.