Answer:
The correct answer is letter "A": such that the marginal physical product per last dollar spent on each factor of production is equalized.
Explanation:
The general concept of profit maximization relies on equalizing the marginal revenue to the marginal costs of a firm. The company selects the inputs necessary for production as well as the outputs that are likely to help to generate revenues at its maximum level. Inputs are hired in combinations when the last dollar spent on each input equals the marginal output.
