A firm obeys the least-cost rule by equating the ratios of marginal product to the price.

Marginal product, factor

Explanation:

Least cost rule states that the level of production where there is least cost is when the ratio of labour marginal product to its price is equal to ratio of capital marginal product to its price.

The two factors that will be adjusted are labour and capital while maintaining a given level of output.

For example decision during a production cycle can be wether to hire staff on contract or permanent basis or wether to buy equipment or hire them.

The marginal cost and factor price of labour and capital needs to be equated to achieve least cost

answer; schedule c;