Multiple Choice
Which of the following statements is true?
A) In the short run all inputs are fixed.
B) In the long run a firm is making the optimal input choice when the marginal rate of technical substitution is equal to the input price ratio.
C) Diminishing returns to labor means that adding one more worker will decrease output.
D) all of the above
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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