"both output maximization and cost minimization lead to the same input

1.	"both output maximization and cost minimization lead to the same input combination " Do you agree? explain in 200 words
Answer» Answer: In the theory of production, the profit maximisation FIRM is in equilibrium when, ... For this, it will choose that combination which minimises its cost of production for a ... The isocost line EF shows lower cost but OUTPUT 200 cannot be attained with it. ... In other words, the marginal rate of technical substitution of labour for capital Combination of production factors that, at given prices, lead to the minimum ... PROCESSES that are technically efficient, we assume that the firm COMBINES labour and ... combination of inputs that minimizes the production cost (economically ...

"both output maximization and cost minimization lead to the same input combination " Do you agree? explain in 200 words

Answer»

Answer:

In the theory of production, the profit maximisation FIRM is in equilibrium when, ... For this, it will choose that combination which minimises its cost of production for a ... The isocost line EF shows lower cost but OUTPUT 200 cannot be attained with it. ... In other words, the marginal rate of technical substitution of labour for capital

Combination of production factors that, at given prices, lead to the minimum ... PROCESSES that are technically efficient, we assume that the firm COMBINES labour and ... combination of inputs that minimizes the production cost (economically ...

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