A firm will tend to select the least costly input combination to produce its output.

Name: A firm will tend to select the least costly input combination to produce its output.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

This is known as the principle of cost minimization. A firm will aim to produce its desired level of output using the least expensive combination of inputs, such as labor and capital, in order to minimize its costs and maximize profits.

A Firm Will Tend to Select the Least Costly Input