Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?

  • The marginal product per dollar spent on all inputs is equal
  • The MRTS is equal to the ratio of the quantity of inputs
  • The marginal products of all inputs are equal
  • The marginal product per dollar spent on all inputs is equal and the MRTS is equal to the ratio of the quantity of inputs

Note/Explanation

Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?Answer:The marginal product per dollar spent on all inputs is equal.

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