Least-Cost Rule Question (Check Work).?

Question

Which of the following best sums up the least-cost rule?

A. A firm achieves its lowest average costs by choosing an optimal output quantity.

B. For a given output quantity, the cost-minimizing combination of inputs occurs when an additional factor unit of any input would result in the same amount of output.

C. A firm is most productive when it only uses its most productive input.

D. For a given output quantity, the cost-minimizing combination of inputs occurs when the increased output achieved by spending an additional dollar on any factor is the same.

My Thoughts: Isn't this D?

Answer 1

D. For a given output quantity, the cost-minimizing combination of inputs occurs when the increased output achieved by spending an additional dollar on any factor is the same.

Least-cost rule MP(L)/W= ... = MP(K)/R

You are right.