A firm achieves least-cost in production by substituting factors until?

A firm achieves least-cost in production by substituting factors until?
  • A.
    their prices are equal
  • B.
    the ratio of their marginal -physical-products equals the ratio of their prices
  • C.
    their marginal -physical-products are each equal to their factor prices
  • D.
    their marginal -physical-products are each equal to zero
Correct Answer: Option B
Explanation
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