If the quantity of good A is on the vertical axis and the quantity of good B is on the horizontal axis, then the cost-effective mix between the two goods occurs when:
A) the slope of the associated isoquant line equals the price of A divided by the price of B.
B) the marginal rate of technical substitution equals the price of A divided by the price of B.
C) the marginal rate of technical substitution equals the price of B divided by the price of A.
D) both (a) and (c) are correct.
Correct Answer:
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