Whenever the ratio of marginal products to input prices differs across inputs,
A) The marginal products of inputs will adjust as input combinations change to correct for the inefficiency
B) No change will necessarily follow because the process could still be at peak efficiency
C) A firm's costs could be reduced by shifting input usage toward the input with the lower marginal product to price ratio
D) Cost could be reduced by shifting input usage toward the input with the lower marginal product to price ratio
Correct Answer:
Verified
Q1: The following is true about point A:
A)The
Q2: Suppose labor and capital are both used
Q3: The vertical distance between the total variable
Q4: For a given firm, whenever the ratio
Q5: The variable costs of producing an output,
Q7: When costs are at a minimum,
A)The ratio
Q8: Given input prices and the usual strategy
Q9: A firm that is trying to produce
Q10: Once we enter the region of diminishing
Q11: Total cost is broken down into two
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