Multiple Choice
If the price of just one input rises, a cost- maximizing firm that maintains a constant level of output will use less of the higher- priced input:
A) if the substitution effect outweighs the output effect.
B) and all other inputs.
C) if the output effect outweighs the substitution effect.
D) in all cases.
Correct Answer:
Verified
Correct Answer:
Verified
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