If on a given product indifference curve, a firm is using an insufficient (nonoptimal) amount of one of its inputs,
A)output will be below optimal.
B)the MRP of the input will be below its price.
C)costs will not be minimal.
D)relative input prices need to change.

Question

Quizplus · Accepted Answer

When a firm is using an insufficient (nonoptimal) amount of one of its inputs on a given product indifference curve, it means that the firm is not operating at the lowest possible cost for a given level of output. This inefficiency leads to higher costs than necessary, indicating that costs will not be minimal.

If on a Given Product Indifference Curve, a Firm Is