The least-cost rule is that the ratio of the marginal product of a factor to the price of that factor should be:
A) equal to the amount of the factor.
B) proportional to the amount spent on the factor.
C) equal for all factors if the firm is a perfect competitor.
D) equal to the price of the product.
E) equal for all factors, no matter whether the firm sells in a perfectly or an imperfect competitive market.
Correct Answer:
Verified
Q3: Suppose that a firm has the opportunity
Q4: Income refers to:
A)the flow of wages, interest
Q5: Since income depends on the price of
Q6: The marginal revenue product of input A:
A)the
Q7: If the price of wheat were to
Q9: The demand for corn land will be
Q10: The theory of income and wealth distribution
Q11: The marginal revenue product of an input
Q12: The amount of a given input demanded
Q13: The theory of income distribution:
A)explains how power
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents