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:

Sales Mix

The ratio of each product sold by a company to its total sales, important for understanding profitability and guiding product strategy.

Operating Loss

The result when a company's operating expenses exceed its gross profits or revenues.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range.

Contribution Margin

The remaining income after removing variable expenses, allocated to settle fixed expenses and create profit.