Figure 7.3.4
-Refer to Figure 7.3.4 above. The long run cost curve comes from:
A) a map of isoquants.
B) a map of isocosts.
C) an expansion path.
D) an optimal combination of inputs for a given level of output.

Question

Figure 7.3.4
-Refer to Figure 7.3.4 above. The long run cost curve comes from:
A) a map of isoquants. 
B) a map of isocosts. 
C) an expansion path. 
D) an optimal combination of inputs for a given level of output.

Quizplus · Accepted Answer

The long run cost curve is derived from an expansion path which shows the optimal combination of inputs for every level of output.

Figure 7.3.4 -Refer to Figure 7.3.4 Above. the Long Run Cost Curve