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.
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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.
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.

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