Principles of Microeconomics / Unit 6 MIC 0532 short lesson, about 20 seconds
The Cost-Minimizing Input Rule
Captions available
The idea
Cost is minimized when marginal product per dollar is equal across inputs: labor's marginal product over the wage equals capital's over its price. If one ratio is higher, shift a dollar there.
In practice
It is the utility-per-dollar rule with output for satisfaction.
Where people slip
The anchor works only fixed bundles; the rule comes from the witness, and the exam asks for it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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