Cost minimization suggests that two inputs should be employed to the point where
A) the marginal cost of each input is identical.
B) the marginal revenue product of each input is identical.
C) the marginal physical product per dollar spent on each input is identical.
D) the extra contribution to physical output of the inputs is identical.
C
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Pete the Pizza Man produced $87,000 worth of pizzas in the past year. He paid $39,000 to employees, paid $11,000 for vegetables and other ingredients, and paid $5000 in taxes
He began the year with ingredient inventories valued at $1000, and ended the year with inventories valued at $2000. What was Pete's (and his employees') total contribution to GDP this year?
Suppose there are two goods (X and Y). On a traditional graph of a budget line a tripling of all prices and incomes will
a. alter the slope of the budget line only. b. alter the slope of the budget line as well as the Y-intercept. c. alter the slope of the budget line as well as the X-intercept. d. leave the budget line unaltered.
In 1980, the U.S. misery index was
a. much higher than average. b. slightly higher than average. c. about average. d. below average.
If the real deficit is $100 billion, the inflation rate is 7.5 percent, and the nominal deficit is $400 billion, then total debt is:
A. $1 trillion. B. $2 trillion. C. $3 trillion. D. $4 trillion.