In the cost minimization problem, output:
A)and prices are exogenous while the quantity of inputs are endogenous.
B)is exogenous while input quantities and prices are endogenous.
C)is endogenous while input quantities and prices are exogenous.
D)and the quantity of inputs are exogenous while prices are endogenous.

Question

Quizplus · Accepted Answer

In the cost minimization problem, the firm takes output and prices as given (exogenous) and chooses the quantity of inputs (endogenous) to minimize costs.

In the Cost Minimization Problem, Output