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:

Datasheet

A view or presentation of data in rows and columns, resembling a spreadsheet, often used in databases and data analysis software.

Input Mask

A method used in data entry fields to ensure the format of the input matches a specified pattern.

Field Property

A characteristic of a field in a database, such as its data type, size, and whether it accepts null values.

Bedrooms Field

A specific field in a database or application used to record the number of bedrooms in a property or housing unit.