Cost minimization suggests that two inputs should be employed to the point where

Question

Quizplus · Accepted Answer

Cost minimization occurs when the firm achieves the lowest cost of production by adjusting its input combination so that the marginal physical product per dollar spent on each input is the same across all inputs. This ensures that the firm is getting the most output per unit of input cost, effectively minimizing costs for a given level of output.

Cost Minimization Suggests That Two Inputs Should Be Employed to the Point