An input should be so allocated that the value added by the last unit is the same in all cases.

Related MCQs

• In the long run all input become …………
• The law of diminishing returns only applies in cases where:
• Under which method, the cost is added with the predetermined target rate of return on capital invested
• When all the productive services are increased in a given proportion, the product is increased in the same proportion. This situation is called:
• Which of the following is not a variable input
• Functional relationship between input and output known as
• Which of the following is not a variable input?
• Fixed cost per unit increases when
• Variable cost per unit
• ………. means the total receipts from sales divided by the number of unit sold.