MODULE 72

The Cost-Minimizing Input Combination

715

In this Module, you will learn to:

In the past three modules we discussed the markets for factors of production—land, capital, and labor—and how firms determine the optimal quantity of each factor to employ. But firms don’t determine how much of each input to employ separately. Production requires multiple inputs, and firms must decide what combination of inputs to use to produce their output. In this module, we will look at how firms decide the optimal combination of factors for producing the desired level of output.