{"id":58772,"date":"2024-04-16T01:25:20","date_gmt":"2024-04-16T01:25:20","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=58772"},"modified":"2024-04-16T01:25:20","modified_gmt":"2024-04-16T01:25:20","slug":"in-the-context-of-cost-minimisation-by-a-competitive-producer-which-one-of-the-following-is-not-correct","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-the-context-of-cost-minimisation-by-a-competitive-producer-which-one-of-the-following-is-not-correct\/","title":{"rendered":"In the context of cost minimisation by a competitive producer, which one of the following is NOT correct?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a974b7a547e2\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Marginal rate of technical substitution of the factors equals relative factor price ratio                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Ratio of marginal physical productivities of the factors equals the ratio of factor prices                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Slope of the isoquant in question equals slope of the budget line                <\/div>\r\n                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is D.<\/p>\n<p>The marginal rate of technical substitution (MRTS) of factors of production is the rate at which one factor can be substituted for another while maintaining the same level of output. The relative factor price ratio is the ratio of the prices of the two factors.<\/p>\n<p>In the context of cost minimization by a competitive producer, the MRTS of factors of production will equal the relative factor price ratio when the producer is using the least-cost combination of factors. This is because the producer will always want to use the factors that are the most productive, and the relative factor price ratio will reflect the relative productivity of the factors.<\/p>\n<p>If the MRTS of factors of production were greater than the relative factor price ratio, the producer could reduce costs by using more of the less expensive factor and less of the more expensive factor. Conversely, if the MRTS of factors of production were less than the relative factor price ratio, the producer could reduce costs by using more of the more expensive factor and less of the less expensive factor.<\/p>\n<p>Therefore, the only option that is not correct is D.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In the context of cost minimisation by a competitive producer, which one of the following is NOT correct?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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