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) the costs of the inputs adjust to bring the marginal product ratios and cost ratios together.
Correct Answer:
Verified
Q1: For a given firm, whenever the ratio
Q2: Given input prices and the usual strategy
Q3: The total fixed cost curve
A)varies with the
Q5: The following is true about point A
Q6: Assume initially this firm is at point
Q7: Output for a simple production process is
Q8: The short run total cost of zero
Q9: The vertical distance between the total variable
Q10: A firm that is trying to produce
Q11: The vertical distance between the average variable
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