Exhibit 8A-1
-Refer to Exhibit 8A-1. At point C, output is
A)higher than at point A but lower than at point B.
B)lower than at point A but higher than at point B.
C)the same as at points A and B, but the cost is lower than at point A.
D)the same as at points A and B, but the cost is higher than at point A.
E)the same as at points A and B, and the costs for the three points are the same as well.

Question

Exhibit 8A-1 
-Refer to Exhibit 8A-1. At point C, output is
A)higher than at point A but lower than at point B. 
B)lower than at point A but higher than at point B. 
C)the same as at points A and B, but the cost is lower than at point A. 
D)the same as at points A and B, but the cost is higher than at point A. 
E)the same as at points A and B, and the costs for the three points are the same as well.

Quizplus · Accepted Answer

At point C, the output level is the same as at points A and B because it is on the same isoquant, indicating the same level of output. However, it is at a lower isocost line than point A, which means the cost of producing that output level is lower at point C than at point A.

Exhibit 8A-1 -Refer to Exhibit 8A-1. at Point C, Output Is