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Which of the Following Statements Is Correct

Question 98

Multiple Choice

Which of the following statements is correct?


A) Evidence strongly suggests that legislatively mandated input combinations have greatly reduced production costs in many industries.
B) Legislating input combinations in a particular industry can bias the decision making of the firm's managers and lead to higher-than-necessary costs of production.
C) Legislating input combinations in a particular industry has little or no effect on the decision making of the firm's managers.
D) Legislating input combinations in a particular industry is preferred to relying on market forces to determine the cost-minimizing combination of inputs to a production process.

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