To hire or purchase inputs, a business must pay a price that matches the lowest opportunity cost of the input owner.

Name: To hire or purchase inputs, a business must pay a price that matches the lowest opportunity cost of the input owner.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The price a business pays to hire or purchase inputs is determined by market conditions, including supply and demand, and not necessarily by the lowest opportunity cost of the input owner.

To Hire or Purchase Inputs, a Business Must Pay a Price