When the extra dollar spent on labor has the same benefit as the extra dollar spent on capital:
A) profits are minimized.
B) profits are maximized.
C) costs are minimized.
D) costs are maximized.

Question

Quizplus · Accepted Answer

When the extra dollar spent on labor has the same benefit as the extra dollar spent on capital, it indicates that the firm is using its resources efficiently, minimizing costs for a given level of output.

When the Extra Dollar Spent on Labor Has the Same