Any point where the isocost line cuts the isoquant line is a possible combination of factors that could be used.

Question

Quizplus · Accepted Answer

This statement is true. Any point where the isocost line (which represents all possible combinations of factors that can be purchased with a given budget) intersects the isoquant line (which represents all possible combinations of factors that can produce a given level of output) represents a combination of factors that could be used to produce that level of output.

Any Point Where the Isocost Line Cuts the Isoquant Line