A firm operates at its least- cost position for a given level of output by equating
A) the average product for each factor.
B) the price of each input.
C) the marginal product per dollar spent for each factor.
D) the marginal product of each factor.
E) the total expenditure on each input.

Question

Quizplus · Accepted Answer

A firm minimizes costs by equating the marginal product per dollar spent on each factor, ensuring that each dollar spent on inputs yields the same additional output.

A Firm Operates at Its Least- Cost Position for a Given