combination of (markets, goods, or factors) that (minimizes or maximizes) 2nd qu

Question

combination of (markets, goods, or factors)
that (minimizes or maximizes)

2nd question

they consume a combination of (markets, goods, or factors)

that (minimize or maximize)

this requires the ratio of (marginal cost, total utility, or marginal utility)

Chapter 27 Homework Set Graded Assignment 1 Read Chapter 27 Back to Assignment Due Monday 12.04.17 at 11:45 PM Attempts: Score: /2 4. Questions and Problems 4 How does the firm's least-cost rule compare to how buyers allocate their consumption dollars? The firm's least-cost rule specifies the combination of that costs and so requires that the ratio of the marginal to the price of that factor be the same across all factors. When consumers allocate their consumption dollars, they consume a combination of of that V utility. This requires the ratio to the price of the good to be the same across all goods. Save & Continue Continue without saving Copyright Notices Terms of Use Privacy Notice Security Notice Accessibility

Explanation / Answer

1) The firm's least-cost rule specifies the combination of Factors that Minimizes costs and so requires that the ratio of the marginal Product to the price Mof that factor be the same across all factors.

2) WHen consumers allocate thier consumption dollar, they consume a combination of Goods that Maximizes utility. This requires the ratio of Marginal utility to the price of the good to be the same acorss all goods.

because cosnumer utility is maximize where MUx/Px = MUy/ Py

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.