Which of the Following Statements Is True

question 66

Multiple Choice

Which of the following statements is true?

• A)In the short run all inputs are fixed.
• B)In the long run a firm is making the optimal input choice when the marginal rate of technical substitution is equal to the input price ratio.
• C)Diminishing returns to labor means that adding one more worker will decrease output.
• D)all of the above
• E)none of the above

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Definitions:

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