Cost Minimization Suggests That Two Inputs Should Be Employed to the Point

question 288

Multiple Choice

Cost minimization suggests that two inputs should be employed to the point where

• A) the marginal cost of each input is identical.
• B) the marginal revenue product of each input is identical.
• C) the marginal physical product per dollar spent on each input is identical.
• D) the extra contribution to physical output of the inputs is identical.

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Definitions:

Consolidated Statement

A financial statement that aggregates the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries to reflect the total financial position and results of the group.

Financial Position

An entity's economic state, represented by its assets, liabilities, and equity at a given point in time.

Acquisition Differential

The gap between what is paid for an acquisition and the fair value of the clearly identified assets acquired.

Impairment Losses

Financial recognition of the reduced recoverable value of an asset, below its carrying amount on the balance sheet.