The _____ states that the costs of producing a given level of output are minimized when the marginal physical product per dollar that is spent on every input is equalized.
A) law of demand
B) law of supply
C) cost-minimization rule
D) profit-maximization rule

Question

Quizplus · Accepted Answer

The cost-minimization rule states that for a firm to produce a specific level of output at the lowest possible cost, it must allocate its spending on inputs in such a way that the marginal product per dollar spent is the same for all inputs. This ensures efficient use of resources and minimizes production costs.

The _____ States That the Costs of Producing a Given