An industry is producing at the least-cost rate of production when
A)marginal cost is greater than average total cost.
B)marginal revenue is greater than price.
C)price and the minimum average total cost are equal.
D)price and marginal revenue are equal.

Question

Quizplus · Accepted Answer

An industry is producing at the least-cost rate of production when price equals the minimum average total cost. This indicates that the firm is producing its output at the lowest possible cost per unit, which is a condition for optimal efficiency in production.

An Industry Is Producing at the Least-Cost Rate of Production