A firm can minimize cost by
A) picking the bundle of inputs where the lowest isocost line touches the isoquant.
B) picking the bundle of inputs where the isoquant is tangent to the isocost line.
C) picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input.
D) All of the above.
D
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Refer to Figure 9.2. A movement from point c to point b could be caused by a simultaneous ________ and ________
A) decrease in government spending; decrease in the price of oil B) increase in government spending; increase in the money supply C) increase in taxes; decrease in government spending D) decrease in taxes; increase in the price of oil
The market price for Chinese televisions recently changed from $200 per television set to $150 . _____, will benefit the most from this change in price
a. Lee Gadgets Co., a retail shop that sells Chinese televisions to consumers b. Wayne Inc., a manufacturer of Chinese televisions c. Harry, a consumer who buys a Chinese television set d. Light Inc., a wholesaler who sells Chinese televisions to retailers