When costs are at a minimum,

Name: When costs are at a minimum,
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When costs are at a minimum, the condition of equal marginal productivity per dollar spent on all inputs must be met. This means that the extra output obtained from the last dollar spent on any input (labor, capital, etc.) should be the same across all inputs, ensuring cost efficiency. This principle is known as the equality of marginal productivity per dollar and is essential for minimizing costs in production.

When Costs Are at a Minimum