Question #51391

In order to minimize costs, a firm will employ resources such that the marginal products for each input are equalized. True, False or Uncertain

Expert's answer

In order to minimize costs, a firm will employ resources such that the average total costs are at its minimum and the marginal products for each input are equalized, as the marginal productivity per dollar spent should be the same for all inputs.
So, the statement is True.
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