Optimal input combination to minimize the cost for a given output will be at the point where:
A. Isocost is tangent to Isoquant
B. MRTS between inputs is equal
C. Any movement from optimum point will lead to low level of output
D. All the above conditions are fulfilled.
Answer:D
Optimal input combination to minimize the cost for a given output will be at the point where:
A. Isocost is tangent to Isoquant B. MRTS between inputs is equal C. Any movement from optimum point will lead to low level of output D. All the above conditions are fulfilled.