Assuming That a Firm Uses Three Factors A, B and C

Multiple Choice

Assuming that a firm uses three factors A, B and C (whose prices are respectively Pa, Pb and Pc) , which of the following represents the least- cost combination of these factors?

A) Pa = Pb = Pc
B) MPPa/MPPb = MPPb/MPPc = MPPc/MPPa
C) MPPa × Pa = MPPb × Pb = MPPc × Pc
D) MPPa/Pa = MPPb/Pb = MPPc/Pc
E) Pa × Pb × Pc = MPPa × MPPb × MPPc