Examlex

Solved

What Is the Last Dollar Rule for Cost-Minimization? Provide a Brief

question 57

Essay

What is the last dollar rule for cost-minimization? Provide a brief explanation (in words)as well as the corresponding mathematical equality.If the firm is producing at a point where the isocost line is steeper than the isoquant,what does the last dollar rule imply (i.e. ,where is the last dollar most productive,L or K)and how should the firm alter its capital and labor in the long run?


Definitions:

Leaf

The photosynthetic organ of plants, typically broad and flat, responsible for converting sunlight into energy via photosynthesis.

Transpiration

The process by which water is absorbed by plant roots, moves through plants, and exits as vapor via stomata in the leaves.

Nutrients Distribution

The process by which nutrients are transported and provided to various cells and tissues throughout an organism to support its functions.

Excess Transpiration

The condition where a plant loses more water than necessary through its stomata, which can lead to dehydration.

Related Questions