Suppose That a Firm Uses Only Two Inputs in Its

question 47

Multiple Choice

Suppose that a firm uses only two inputs in its production process. The ratio of the marginal products of these inputs always exceeds the ratio of the prices of the inputs. What can you say about the cost-minimizing point of the firm?

• A)It is an interior solution.
• B)A cost-minimizing point must not exist.
• C)If a cost-minimizing point exists, it must be at a corner.
• D)Costs must be negative at the cost-minimizing point.

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Definitions:

Alcoholic

An individual who has a dependence on or addiction to alcohol, often characterized by an uncontrollable urge to drink.

Increased B State

This term appears to be fabricated or too specific without a widely recognized definition in scientific literature, so I'll say NO.

Aversive A State

Likely refers to an aversive state, a condition or situation that an organism seeks to avoid due to it being unpleasant or painful.

Aversive B State

A theoretical state arising from a negative stimulus, driving an organism to action to avoid discomfort or unpleasant outcomes; not a widely used or recognized term in psychology, so context-specific definition might vary.