The least-cost rule for firms states that in the long run,firms will
A)produce output at the point where ATC is minimized
B)produce output at the point where MC is minimized
C)minimize variable costs
D)choose the output level with the lowest TC
E)choose the lowest-cost input combination for any output level

Question

Quizplus · Accepted Answer

The least-cost rule for firms states that firms will choose the lowest-cost input combination for any output level. This means that firms will minimize their costs by finding the most efficient way to produce their goods or services. By choosing the lowest-cost input combination, firms can produce their output at the lowest possible cost, maximizing their profits in the long run.

The Least-Cost Rule for Firms States That in the Long