When the marginal product per dollar spent on every input is the same, costs are:
A) minimized.
B) maximized.
C) equalized.
D) accounting costs only.

Question

Quizplus · Accepted Answer

When the marginal product per dollar spent on every input is the same, it means that resources are being allocated in the most efficient way possible, minimizing costs. This is a principle of cost minimization in economics, where the goal is to achieve the lowest cost of production by optimally distributing resources across different inputs.

When the Marginal Product Per Dollar Spent on Every Input