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A firm achieves least cost in production by substituting factors until


Question

A firm achieves least cost in production by substituting factors until

Options

A)
their factor prices are equal
B)
their marginal-physical products are each equal to their factor prices
C)
their marginal-physical products are each zero
D)
the ratio of their marginal-physical products equals the ratio of their prices

The correct answer is C.


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