A firm can minimize cost by A. picking the bundle of inputs where the isoquant is tangent to the isocost line. B. picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input. C. picking the bundle of inputs where the lowest isocost line touches the isoquant. D. All of the above.

A firm can minimize cost by All of the above.

picking the bundle of inputs where the isoquant is tangent to the isocost line

picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input.

picking the bundle of inputs where the lowest isocost line touches the isoquant.

Land, labor, capital are the major things that contributes the factors of production. When a firm has the ability to purchase all these factors within the available budget giving equal importance to all these factors will contribute to isocost.  The ability of the firm to combine all these factors of production in an efficient way for the production of goods and services contributes the isoquant.

It is very essential for a company to focus on these two things isocost and isoquants that determines its cost minimization and also success. The three things such as picking the factors of inputs in such as way that the isoquant is tangent to the isocost line,picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input and picking the bundle of inputs where the lowest isocost line touches the isoquant can minimize the cost of the firms.