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Why Do Firms Seek to Use the Least-Cost Combination of Inputs

Question 73

Multiple Choice

Why do firms seek to use the least-cost combination of inputs?


A) Because managers and supervisors find their jobs are easiest when the least-cost combination is used.
B) Because they want to keep costs low in order to appear to the media as a well-run business.
C) Because they won't be able to stay in business if they don't.
D) Because that is the combination that their employees prefer.

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