Isocost lines Select one: a. represent supply and demand for inputs at a given cost b. are the inverse of the isoquant lines c. represent the combinations of inputs that have the same marginal cost d. represent the combinations of inputs that have the same total cost

Question

Kenzie Gibson

Business

30 January, 18:43

Isocost lines Select one: a. represent supply and demand for inputs at a given cost b. are the inverse of the isoquant lines c. represent the combinations of inputs that have the same marginal cost d. represent the combinations of inputs that have the same total cost

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Answers (1)

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Jeramiah Mckenzie · Answer 1

Option D is correct

An Isocost line represents the combinations of inputs that have the same total cost

Explanation:

An Isocost line is line showing the different combinations of quantities of two production factors that cost the same amount in total.

For example, an Isocost line is derived on a graph by plotting the different combinations of labour hours and the units of seed on a graph with one axis labelled as labour cost and the other seed cost.

This line is useful in the study of theory of production in economics