A plant is located at the cost- minimizing location when the marginal benefit of moving closer to the inputs is exactly double the marginal cost of moving closer.

Name: A plant is located at the cost- minimizing location when the marginal benefit of moving closer to the inputs is exactly double the marginal cost of moving closer.
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Question

Quizplus · Accepted Answer

The cost-minimizing location is achieved when the marginal benefit of moving closer to the inputs equals the marginal cost of moving closer, not when it is double.

A Plant Is Located at the Cost- Minimizing Location When