A firm is producing with the least-cost combination of resources when the
A) last dollar spent on each resource yields the same marginal product.
B) total dollars spent on each resource are all the same.
C) unit prices of the resources are equalized.
D) marginal product of each of the resources is all the same.

Question

Quizplus · Accepted Answer

A firm achieves the least-cost combination of resources when the marginal product per dollar spent on each resource is equalized, ensuring that each dollar spent contributes equally to output.

A Firm Is Producing with the Least-Cost Combination of Resources