Once a producer has chosen a quantity of output to produce, finding the optimal combination of inputs will depend upon the
A) price of the output
B) income of the vendors
C) cost of the inputs

Question

Quizplus · Accepted Answer

The optimal combination of inputs will depend on the cost of the inputs. The producer wants to minimize their costs while still achieving their desired level of output. Therefore, they will choose the combination of inputs that will achieve the desired level of output at the lowest possible cost. The price of the output and the income of the vendors may affect the demand for the output, but they do not directly affect the optimal combination of inputs.

Once a Producer Has Chosen a Quantity of Output to Produce