Figure 7-17

-Which of the following statements must be true when a firm makes choices that put it at point A in Figure 7-17?
A)The firm is minimizing its cost of producing 100 units of output.
B)The ratio of the marginal physical products of labor and of land equals the ratio of the prices of labor and of land.
C)The firm first decided how much output to produce and then decided how to produce it.
D)All of the above are true.

Question

Figure 7-17
 
-Which of the following statements must be true when a firm makes choices that put it at point A in Figure 7-17?
A)The firm is minimizing its cost of producing 100 units of output. 
B)The ratio of the marginal physical products of labor and of land equals the ratio of the prices of labor and of land. 
C)The firm first decided how much output to produce and then decided how to produce it. 
D)All of the above are true.

Quizplus · Accepted Answer

If a firm is at point A, it implies that it is operating efficiently, minimizing costs for a given level of output, and making decisions on production and resource allocation based on cost minimization principles.

Figure 7-17 -Which of the Following Statements Must Be True When a Be