The cost-minimizing rule is that a firm should utilize inputs such that the marginal physical product of an input divided by the price of the input is the same for all inputs. This is also the profit-maximizing rule because

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The profit-maximizing rule involves adjusting the input until the ratio of the marginal product of an input to its price is equal across all inputs, multiplied by the product price, which is constant for each input, reflecting the additional revenue generated per unit of input used. This ensures that the last dollar spent on any input yields the same amount of additional revenue, optimizing the allocation of resources for maximum profit.

The Cost-Minimizing Rule Is That a Firm Should Utilize Inputs