Overall production costs will be minimized when the marginal costs of production across firms are equal.

Name: Overall production costs will be minimized when the marginal costs of production across firms are equal.
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Question

Quizplus · Accepted Answer

When the marginal costs of production are equal across firms, resources are distributed efficiently and there is no incentive for any firm to produce more or less than their competitors. This leads to the overall production costs being minimized.

Overall Production Costs Will Be Minimized When the Marginal Costs