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
Economics
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Suppose that the federal budget is balanced when GDP is at potential GDP. If equilibrium GDP falls below potential,
A) this will result in a current budget deficit. B) government transfer payments will be rising and tax receipts will be falling. C) the cyclically adjusted budget will be balanced. D) All of the above are correct.
Economics
The full-employment level of output is called:
A) aggregate demand. B) aggregate supply. C) potential output. D) none of the above.
Economics