least-cost supply

least-cost supply

an assumption within the THEORY OF SUPPLY that PROFIT MAXIMIZING firms will always employ that combination of FACTOR INPUTS that minimizes the TOTAL COST of producing a given output. See COST FUNCTION, ISOQUANT CURVE.
References in periodicals archive ?
The new PSAs, which were approved by the Energy Regulatory Commission, are in accordance with Meralco's commitment to providing least-cost supply to its customers," the statement added.
Greater retail responsibility further upstream, coupled with the e-enabled sharing of real-time sales information and the synchronisation of supply and demand, means the vision of just-in-time, retail-ready deliveries becomes a realistic option for the first time -- the true mark of a least-cost supply chain.
In the policy area, ENERCON has continued to support cogeneration, line loss reduction, rationalization of prices, elimination of flat rate tariffs, least-cost supply options, removal of tax and other financial barriers to energy efficiency, introduction of standards, and inclusion of energy analysis and environmental impact studies in all PC-1s.
AEP-Ohio's proposed charges are unfair to electricity consumers, unfair to competing generation investors and service providers, and inefficient in the sense of discouraging least-cost supply of generation services.

Full browser ?