Asked by
Julia Battaglia
on Nov 04, 2024
Verified
If the product derived from the last dollar spent on labor is greater 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 of finding ways to reduce expenses and lower the cost of production in order to increase profitability.
Last Dollar
The concept of last dollar refers to the final portion of funding or resources available for a project, initiative, or individual, often indicating the utilization of all available funds.
- Evaluate the tactics used by an organization to minimize expenditure through the marginal product and the price of inputs.
Verified Answer
KJ
Learning Objectives
- Evaluate the tactics used by an organization to minimize expenditure through the marginal product and the price of inputs.