Multiple Choice
Interior solutions of the cost minimizing problem, given convex isoquants, are characterized by:
A) diminishing marginal rate of technical substitution.
B) a tangency between an isoquant and an isocost line.
C) a solution on one of the axes.
D) an intersection between an isoquant and an isocost line.
Correct Answer:
Verified
Correct Answer:
Verified
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