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What do you understand by the term least-cost solution and in what sense is it a "solution"?
The term least-cost solution does not describe one specific principle in economics. Least-cost solution covers a wide diversity of economical topics that help form an ultimate solution.
The term can be introduced in the context of a firms aim and objectives e.g. "profit maximization". In many cases firms may have other objectives such as providing quality to customers and thus may adopt techniques such as total quality management (TQM). Organizations such as Banks often prefer to focus on providing efficient services. Occasionally firms abide by aims and objectives other than profit maximi…
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