Whenever the Ratio of Marginal Products to Input Prices Differs

question 66

Multiple Choice

Whenever the ratio of marginal products to input prices differs across inputs,

• A)the marginal products of inputs will adjust as input combinations change to correct for the inefficiency.
• B)no change will necessarily follow because the process could still be at peak efficiency.
• C)a firm's costs could be reduced by shifting input usage toward the input with the lower marginal product to price ratio.
• D)the costs of the inputs adjust to bring the marginal product ratios and cost ratios together.

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Definitions:

Nonprimary Motor Area

Regions of the brain involved in the planning, control, and execution of voluntary movements, distinct from the primary motor cortex.

Coordinating Movements

The process of using different parts of the body together smoothly and efficiently.

Right Hemisphere

Half of the brain that is typically associated with spatial abilities, creativity, and visual tasks.

Stroke

A medical condition characterized by sudden loss of brain function due to either a blockage or rupture of blood vessels in the brain.