A line that illustrates all the different combinations of two inputs that result in the same total cost is called a(n)
A)average total cost curve.
B)isocost line.
C)total cost line.
D)budget line.
E)isoquant.

Question

Quizplus · Accepted Answer

An isocost line represents all the different combinations of two inputs that result in the same total cost. Therefore, option B is the correct choice. Option A refers to the cost per unit of output, option C refers to the total cost of production at different levels of output, option D refers to the different combinations of two goods that can be purchased with a given income, and option E refers to the different combinations of two inputs that can produce a given level of output.

A Line That Illustrates All the Different Combinations of Two