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12. When the total cost is minimized for producing output Q. at the input combination selected, the slope of the

Question:

12. When the total cost is minimized for producing output Q. at the input combination selected, the slope of the isocost is e

12. When the total cost is minimized for producing output Q. at the input combination selected, the slope of the isocost is equal to the slope of the isoquant the Marginal Rate of Technical Substitution (MRTSLK) equals the input ratio of Land K. the productivity ratio of labor and capital equals their total-cost ratio. all of the above are correct

Answers

Answer : Option A is correct. When the total cost is minimized for producing output Q, at the input combination selected , the slope of isocost us equal to slope of isoquant. It means that the combination of input has been provided optimumal output in order to maximize the profit.It means profit level should be higher and there is an increase in the productivity.

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