A Firm Operates at Its Least-Cost Position for a Given

question 68

Multiple Choice

A firm operates at its least-cost position for a given level of output by equating

• A)the marginal product of each factor.
• B)the marginal product per dollar spent for each factor.
• C)the price of each input.
• D)the total expenditure on each input.
• E)the average product for each factor.

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Definitions:

Operating Segment

It's a component of a business that engages in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, comprising standards for financial reporting and accounting practices in Canadian entities.

Chief Operating Decision Maker

The individual or group within an organization primarily responsible for deciding how resources are allocated and assessing performance of operating segments.

Discrete Financial Information

Financial data and metrics that are specific, distinct, and separate from other information, often used for analysis or decision-making in isolated instances.