Changes

2.  "adjusting inputs to minimize the overall cost at a constant level of output"

2.  "adjusting inputs to minimize the overall cost at a constant level of output"

:How does a firm adjust its inputs (e.g., workers or equipment) so that it has reached the lowest possible overall cost?  By making sure that he is getting the most "bang for his buck" '''''for each input'''''.  In other words, the firm makes sure that each input is producing the most marginal product per dollar spent on that input.  If one worker is producing more than another worker, and both are being paid the same, then the owner has not lowered his costs to a minimum.  He could fire the lazy worker and hire a part-time worker like his good one, and then produce the same output at less cost.

:How does a firm adjust its inputs (e.g., workers or equipment) so that the firm reaches its lowest possible overall cost?  By making sure that the firm is getting the most '''''for each input'''''.  In other words, the firm makes sure that each input is producing the most marginal product per dollar spent on that input.  If one worker is producing more than another worker, and both are being paid the same, then the owner has not lowered his costs to a minimum.  He could fire the lazy worker and hire a part-time worker like his good one, and then produce the same output at less cost.

:Summarizing the above, the firm minimizes its overall costs '''''by making sure the marginal product per cost for each input is equal'''''.  If one input (e.g., one worker) is producing more marginal product per cost than another, then the overall costs are not minimized.  The unproductive worker is wasting the firm's money.

:Summarizing the above, a firm minimizes its overall costs '''''by making sure the marginal product per cost for each input is equal'''''.  If one input (e.g., one worker) is producing more marginal product per cost than another, then the overall costs are not minimized.  The unproductive worker is wasting the firm's money.

3.  "the effect of the minimum wage on the competition for labor"

3.  "the effect of the minimum wage on the competition for labor"