Home › CBSE Class 11 (Arts) › Economics › Microeconomics: Producer Behaviour and Supply › Given constant factor prices, what determines al…
Given constant factor prices, what determines all of a firm's cost functions?
AThe production function
BThe income tax rate
CConsumer preferences
DThe money supply
Answer & Solution
Correct answer: A. The production function
Costs are input prices times the inputs needed, and the production function fixes the inputs needed for each output.
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