πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      In choosing between the two completing resources, the

      saving in the resource replaced must be greater than the cost of resource added. Which of the following law states that:
      A Least cost combination Correct Answer Incorrect Answer
      B Law of diminishing returns Correct Answer Incorrect Answer
      C Law of equi-marginal utility Correct Answer Incorrect Answer
      D Law of supply and demand Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      The principle of least cost combination states that if two factor inputs are considered for a given output the least cost combination will be such where their inverse price ratio is equal to their marginal rate of substitution.

      Practice Next
      ask-question