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)optimal output.
B)maximum cost.
C)maximum profit.
D)maximum output.
E)minimum cost.

Question

Quizplus · Accepted Answer

When a firm is operating at the minimum cost, it means that it is producing a given level of output with the smallest possible total value of inputs. This implies that there is no other way of producing the same level of output without incurring higher costs. Therefore, the firm is not only minimizing its expenses, but it is also maximizing its efficiency, which is crucial for ensuring sustainability and competitiveness in the long run.

When There Is No Other Way of Producing a Given