When the isocost line is tangent to the isoquant, then A) MRTS = -w/r
When the isocost line is tangent to the isoquant, then
A) MRTS = -w/r.
B) the firm is producing that level of output at minimum cost.
C) the last dollar spent on capital yields as much extra output as the last dollar spent on labor.
D) All of the above.
ANSWER
D
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