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In Order to Minimize the Cost of a Particular Level vw\frac { v } { w }

Question 1

Multiple Choice

In order to minimize the cost of a particular level of output,a firm should produce where


A) labor input equals capital input.
B) the RTS (of L for K) = vw\frac { v } { w } .
C) the RTS (of L for K) = wv\frac { w } { v }
D) the MRS = vw\frac { v } { w } .

Correct Answer:

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