Concerning the Maximization of Output Subject to a Cost Constraint,which

question 10

Multiple Choice

Concerning the maximization of output subject to a cost constraint,which of the following statements (if any) are true?

• A) At the optimal input combination,the slope of the isoquant must equal the slope of the isocost line.
• B) The optimal solution occurs at the boundary of the feasible region of input combinations.
• C) The optimal solution occurs at the point where the isoquant is tangent to the isocost lines.
• D) all of the above
• E) none of the above

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Definitions:

Profits

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Productivity

The efficiency of production measured by the amount of output per unit of input.

Consumer Prices

The prices paid by consumers for goods and services, which can fluctuate based on supply and demand, inflation, and other economic factors.

Student Absenteeism

Refers to the habit of students missing school frequently without valid reasons, affecting their academic performance.