At the optimum combination of two inputs,
A) the slopes of the isoquant and isocost curves are equal.
B) costs are minimized for the production of a given output.
C) the marginal rate of technical substitution equals the ratio of input prices.
D) all of the above
E) A and C only
D
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Which measure of inflation would include consumer goods and capital goods?
A. the Consumer Price Index B. the Retail Trade Survey C. the GDP Price Index D. the Employment Cost Index
Positive economics
What will be an ideal response?
Which of the following causes the market demand curve for a good to shift?
A. The cost of factors of production. B. The number of buyers in the market. C. The expectations about future sales. D. A producer's income.
The infant industry argument
a. is that governments should protect all industries for the first five years of existence b. is that governments should protect a new industry until it can "stand on its own feet" c. defends quotas on products produced by infant industries abroad d. has been used to justify protection of strategically important industries e. explains why some less developed countries export raw materials