Figure 7-17
Which of the following statements must be true when a firm makes choices that put it at point A in Figure 7-17?
a.
The firm is minimizing its cost of producing 100 units of output.
b.
The ratio of the marginal physical products of labor and of land equals the ratio of the prices of labor and of land.
c.
The firm first decided how much output to produce and then decided how to produce it.
d.
All of the above are true.
d
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