Whenever a Firm Uses Input X but Not Input Y,then

question 5

Multiple Choice

Whenever a firm uses input X but not input Y,then

• A) MRTS_XY >= P_X/P_Y at the chosen input combination
• B) MRTS_XY <= P_X/P_Y at the chosen input combination
• C) MRTS_XY = P_X/P_Y at the chosen input combination
• D) MRTS_XY = -P_X/P_Y at the input combination

---

Definitions:

Personal Income Tax

A tax levied on individuals or households based on their total income from various sources, including wages, salaries, and investments.

Taxable Income

The portion of an individual's or corporation’s income that is subject to taxes according to the laws and regulations of a particular jurisdiction.

Total Tax

The complete amount of tax owed by an individual or entity to the government within a specified period.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, imposing a higher percentage rate on the wealthy.