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The Combination of Inputs Is Optimal

Question 55

Multiple Choice

The combination of inputs is optimal


A) at points of tangency between isoquants and isocosts.
B) if the marginal revenue product is equal to the marginal resource cost for all inputs.
C) if the marginal rate of technical substitution between every pair of inputs is equal to the ratio of the prices of those inputs.
D) All of the above are correct.

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