When there is no other way of producing a given level of output with a smaller total value of inputs, the firm is operating at
A) maximum profit.
B) optimal output.
C) minimum cost.
D) maximum output.
E) an irrelevant output.

Question

Quizplus · Accepted Answer

When a firm is operating at minimum cost, it is producing a given level of output with the smallest total value of inputs. This implies that the firm is already using the most efficient combination of inputs, and no other way of producing the same level of output exists. Therefore, choice C is the best answer.

When There Is No Other Way of Producing a Given