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Commerce · Q808

Economics

Graduate and Post Graduate · Commerce · question 808

Q808

Optimal input combination to minimise the cost for a given output will be at the point where

A.
Isocost is tangent to isoquant
Answer
B.
MRTS between inputs is equal
C.
Any movement from optimum point will lead to low level of output
D.
All of the above conditions are fulfilled

Answer: Option A

Solution

Answer: Option A
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