Asked by
angel bustamante
on Dec 08, 2024
Verified
If the product derived from the last dollar spent on labor is less than the product derived from the last dollar spent on capital, then the firm
A) is minimizing costs.
B) should use more labor and less capital to minimize costs.
C) should use less labor and more capital to minimize costs.
D) should increase the price paid to labor and decrease the price paid to capital to minimize costs.
Minimize Costs
The process or strategy of reducing expenses to the lowest possible level while maintaining efficiency.
Last Dollar
The final unit of currency spent or invested in the completion of a transaction or project.
- Assess the cost-reduction strategy of a corporation based on the analysis of marginal product and input costs.
Verified Answer
LW
Learning Objectives
- Assess the cost-reduction strategy of a corporation based on the analysis of marginal product and input costs.