The profit-maximizing and the least-cost combination of inputs are
A)the result of unrelated decisions.
B)always identical.
C)such that minimizing costs always results in profit maximization.
D)such that maximizing profits always entails the least-cost combination of inputs.

Question

Quizplus · Accepted Answer

Maximizing profits for a firm involves choosing a combination of inputs that produces a given output at the lowest possible cost, which inherently means selecting the least-cost combination of inputs. This approach ensures that the firm is operating efficiently by minimizing costs while producing the desired level of output, thereby maximizing profits.

The Profit-Maximizing and the Least-Cost Combination of Inputs Are