- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 1. Supply Analysis: Cost, Marginal Return, and Productivity
CFA Practice Question
The cost function illustrates the relationship between output and ______
B. resource prices, other factors remaining constant.
C. costs, other factors affecting costs remaining constant.
A. costs as input prices vary.
B. resource prices, other factors remaining constant.
C. costs, other factors affecting costs remaining constant.
Correct Answer: C
The cost function illustrates the relationship between the cost of production and the flow of output.
User Contributed Comments 3
| User | Comment |
|---|---|
| haarlemmer | Ceteris Paribus means all else held constant. |
| rana1970 | which language? |
| sunny | Ceteris paribus is a Latin phrase, literally translated as "with other things [being] the same," and usually rendered in English as "all other things being equal." |