A Firm Produces Ping-Pong Balls Using Two Inputs

Multiple Choice

A firm produces Ping-Pong balls using two inputs.When input prices are ($15, $7) the firm uses the input bundle (17, 71) .When the input prices are ($12, $24) the firm uses the bundle (77, 4) .The amount of output is the same in both cases.Is this behavior consistent with WACM?

A) Yes.
B) No.
C) It depends on the level of the fixed costs.
D) We have to know the price of the output before we can test WACM.
E) It depends on the ratio of variable to fixed costs.