When the price of an input _____,a firm's least-cost production method never uses ______ of that input and usually employs _____.
A) increases; less; the same amount
B) increases; less; more
C) decreases; more; less
D) decreases; less; more

Question

Quizplus · Accepted Answer

When the price of an input decreases, a firm's least-cost production method tends to use more of that input and employ fewer substitutes. This is because it has become relatively cheaper compared to other inputs, making it more cost-effective to use more of it in production. Therefore, choice D is the correct answer.

When the Price of an Input _____,A Firm's Least-Cost Production