Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?
A. The marginal product per dollar spent on all inputs is equal and the MRTS is equal to the ratio of the quantity of inputs.
B. The marginal products of all inputs are equal.
C. The marginal product per dollar spent on all inputs is equal.
D. The MRTS is equal to the ratio of the quantity of inputs.
Answer: C
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Other things being equal, what is the effect of deficit spending on credit markets?
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Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?
A) a decrease in income B) an increase in the relative price of a soft drink C) a decrease in the relative price of a soft drink D) a decrease in the price of bottled water
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What will be an ideal response?
In market economies, income distribution is always going to be completely equitable
Indicate whether the statement is true or false