Solved

The Least-Cost Rule Is That the Ratio of the Marginal

Question 8

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents