A Firm's Least-Cost Position for Producing a Given Output Level

question 95

Multiple Choice

A firm's least-cost position for producing a given output level occurs at that point where

• A)the isocost line intersects the highest isoquant.
• B)the isocost and isoquant intersect the horizontal axis.
• C)the isoquant is closest to the origin.
• D)the isocost line and the isoquant are tangent to each other.
• E)the isocost and isoquant intersect the vertical axis.

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Definitions:

Unilateral Contract

A contract where one party makes a promise in exchange for an act by the other party.

Quasi-contract

A quasi-contract is a legal concept where the court imposes a contract-like obligation on a party to prevent unjust enrichment, even though no actual agreement exists between the parties.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made when the other party has reasonably relied on that promise to their detriment.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed to be enforceable.