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When the inputs to production are imperfect substitutes but still somewhat substitutable, the firm will minimize...

When the inputs to production are imperfect substitutes but still somewhat substitutable, the firm will minimize the cost of producing a given level of output by: A. None of these answers is correct B. Equating the ratios of marginal products to input prices. C. Equating the marginal products across inputs D. Using the inputs in a fixed proportion E. Using only the cheapest input

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Answer #1

It shall be noted that when the inputs to the production are imperfect substitutes but still somewhat substitutable, the cost minimization would occur at a level of output at which, the ratio of the marginal products to the input prices is the same across all the inputs.

Hence, the correct answer is - B. Equating the ratios of marginal products to input prices

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