When there is no other way of producing a given level of output with a smaller total value of inputs,the firm is operating at
A)minimum cost.
B)maximum output.
C)maximum profit.
D)optimal output.
E)maximum cost.

Question

Quizplus · Accepted Answer

When a firm is operating at minimum cost, it means that it is producing a given level of output with the smallest possible total value of inputs. At this point, there is no other way of producing the same level of output with a smaller total value of inputs. Therefore, choice A is the best answer.

When There Is No Other Way of Producing a Given