If a firm is hiring variable resources D and F in perfectly competitive input markets, it will minimize the cost of producing any level of output by employing D and F in such amounts that
A)the price of each input equals its MP.
B)MPD = MPF.
C)MPD / PD = MPF / PF.
D)MPD / PF = MPF / PD.

Question

Quizplus · Accepted Answer

The firm minimizes cost by employing resources such that the ratio of the marginal product to the price of each input is equal across all inputs. This ensures that the last dollar spent on each input yields the same additional output.

If a Firm Is Hiring Variable Resources D and F