272. cost-minimizing firm using two inputs, x and y, will employ inputs so that
A) $\mathrm { MP } _ { x } = \mathrm { MP } _ { y }$
B) $P _ { x } / \mathrm { MP } _ { y } = P _ { y } / \mathrm { MP } _ { x }$
C) $\mathrm { MP } _ { x } / P _ { x } = \mathrm { MP } _ { y } / P _ { y }$
D) $P _ { x } = P _ { y } .$

Question

Quizplus · Accepted Answer

A cost-minimizing firm will employ inputs such that the marginal product per dollar spent on each input is equal, i.e., $\mathrm { MP } _ { x } / P _ { x } = \mathrm { MP } _ { y } / P _ { y }$.

272 Cost-Minimizing Firm Using Two Inputs, X and Y, Will MPx=MPy\mathrm { MP } _ { x } = \mathrm { MP } _ { y }MPx​=MPy​

272 Cost-Minimizing Firm Using Two Inputs, X and Y, Will $\mathrm { MP } _ { x } = \mathrm { MP } _ { y }$