The cost-minimization problem of the firm is to:
A)maximize output subject to a given cost constraint.
B)minimize total cost.
C)minimize average cost.
D)minimize total cost of producing a particular level of output.

Question

Quizplus · Accepted Answer

The cost-minimization problem of the firm involves finding the combination of inputs that minimizes the total cost of producing a given level of output. This is distinct from minimizing total or average costs without regard to output level or maximizing output for a given cost.

The Cost-Minimization Problem of the Firm Is To