When the price of an input ______,a firm's least-cost production method never uses ______ of that input and usually employs ______.
A) Increases; less; the same amount
B) Increases; less; more
C) Decreases; more; less
D) Decreases; less; more

Question

Quizplus · Accepted Answer

When the price of an input decreases, a firm's least-cost production method shifts towards using more of that input and usually employs less of other inputs. This is because the input has become relatively cheaper compared to other inputs, making it more cost-effective to use more of it in the production process. Therefore, option D is the correct answer.

When the Price of an Input ______,A Firm's Least-Cost Production