An isocost line reveals theA) costs of inputs needed to produce along an isoquant.B) costs of inputs needed to produce along an expansion path.C) input combinations that can be purchased for a given total cost.D) output combinations that can be produced with a given outlay of funds.

Question

An isocost line reveals theA)  costs of inputs needed to produce along an isoquant.B)  costs of inputs needed to produce along an expansion path.C)  input combinations that can be purchased for a given total cost.D)  output combinations that can be produced with a given outlay of funds.

Colin Jones · Accepted Answer

Final Answer : C, Explanation :  An isocost line represents all the combinations of inputs that a firm can purchase for a given total cost, showing the trade-offs between the amounts of two inputs (like labor and capital) that the firm can afford given its budget.

An isocost line reveals the

A) costs of inputs needed to produce along an isoquant.
B) costs of inputs needed to produce along an expansion path.
C) input combinations that can be purchased for a given total cost.
D) output combinations that can be produced with a given outlay of funds.

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