Use the Following Figure to Answer the Question : Figure

Multiple Choice

Use the following figure to answer the question : Figure 16-1 :shows the isoquants,IQ₁ and IQ₂,for a competitive firm.

-Refer to Figure 16-1.Which of the following is true at point C?

A) At point C,the marginal product of labor and capital is maximized.
B) Point C identifies the level of output that gives the firm the highest marginal revenue.
C) Point C identifies the least cost method of producing output Q₁.
D) Point C shows that the firm operates with constant returns to scale.