Question

Which of the following would have the least amount of influence on a manager's choice of whichinputs to employ in a production process?
Select one:
A. The price of a competitor's output.
B. The technology of the production process.
C. The marginal productivity of the inputs that can be used in the production process.
D. The prices of the inputs that can be used in the production process.

Answer 1

Answer:

The least important is the Option A "The price of a competitor's output". It has no influence in the decision of the manager about the inputs in the production process. The choice of inputs will depend on the technology, prices of the inputs and their marginal productivities.

Explanation:

The least important is the Option A "The price of a competitor's output". It has no influence in the decision of the manager about the inputs in the production process. The choice of inputs will depend on the technology, prices of the inputs and their marginal productivities.

Option B: The technology of the production process could affect the decision about the inputs employed because they are closely related.

Option C: The marginal productivity affect the decision about the inputs because it determines how the productivity can be maximized.

Option D: The prices of the inputs affect the decision because low price inputs (related with their marginal productivity) will be prefer to the high price inputs.