A firm's cost curve is determined by
A) congressional laws.
B) whether the firm hires engineers or not.
C) natural laws.
D) the firm's production function.

Question

Quizplus · Accepted Answer

The cost curve of a firm is determined by its production function, which specifies the relationship between inputs and outputs. The cost curve depicts the minimum cost at which a given level of output can be produced, based on the prices of inputs and the production technology available to the firm. Congressional laws, hiring engineers, and natural laws are not among the determinants of a firm's cost curve.

A Firm's Cost Curve Is Determined by