The "least-cost combination of resources" to produce a given amount of output means that the output is produced at the lowest
A) ATC for that output.
B) MC for that output.
C) P of that output.
D) TR of that output.

Question

Quizplus · Accepted Answer

The least-cost combination of resources means that the output is produced at the lowest average total cost (ATC) for that output. This is because a firm would want to minimize its cost of production while producing the desired output level. The other options, such as marginal cost (MC), price (P), and total revenue (TR) do not necessarily indicate the lowest cost of production.

The "Least-Cost Combination of Resources" to Produce a Given Amount