🤑ap microeconomics review

Cost minimization rule

Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 examWritten by the Fiveable Content Team • Last updated August 2025

Definition

The principle that a firm minimizes cost by equating the marginal product per dollar spent on each input: MP_L / W = MP_K / P_K.

AP course connection

Topic 3.3: 3.3 Long-Run Production Costs

Unit 3

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Cost minimization rule Definition for AP Microeconomics | Fiveable