If a Firm Is Hiring Variable Resources D and F $\mathrm { MP } _ { D } = \mathrm { MP } _ { F }$

question 220

Multiple Choice

If a firm is hiring variable resources D and F in perfectly competitive input markets, it will minimize the cost of producing any level of output by employing D and F in such amounts that

• A) the price of each input equals its MP.
• B) \(\mathrm { MP } _ { D } = \mathrm { MP } _ { F }\)
• C) \(\mathrm{MP} _ { D } / P _ { D } =\mathrm{MP} _ { F } / P _ { F }\)
• D) \(\mathrm { MP } _ { D } / P _ { F } = \mathrm { MP }_ { F } / P _ { D } \)

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Definitions:

Frequent Cash-Outs

Regular transactions where cash is withdrawn from a company's account, potentially affecting its liquidity or cash reserves.

Restrictive Policy

A financial policy or strategy that aims to limit credit expansion and investment, often to curb inflation or stabilize economic growth.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for a production process for manufacturing goods.

Inventory Period

Inventory Period is the average time it takes for a company to convert its inventory into sales, indicating the efficiency of inventory management and sales processes.