Answer to Question #303957 in Microeconomics for Danelle

Question

Use a graph to explain how the equimarginal principle can be applied to minimise production costs

Answer 1

The equimarginal principle as illustrated by the graph can be used to minimize the cost of production a great deal by reducing the cost of producing a given quantity output. The minimization of the production cost is mainly achieved through the distribution of the cost of production of the firm in order to realize the same marginal costs across the production sources according to the graph.