To Minimize Total Costs for a Particular Rate of Output

question 292

Multiple Choice

To minimize total costs for a particular rate of output, a firm will equate

• A) the average cost of each factor.
• B) the marginal revenue of each factor.
• C) the marginal physical product per dollar spent on each factor.
• D) the marginal revenue product and variable marginal revenue for each factor.

---

Definitions:

Interest Earned

The amount of money generated as income on an investment, savings, or lending over a specified period.

Compounded Annually

Interest calculated on the initial principal and also on the accumulated interest from previous periods within a year.

Home Ownership Savings Plan (HOSP)

A savings plan designed to help individuals accumulate funds towards the purchase of a home.

Quarterly

Occurring every three months or constituting one-fourth of a year.