The figure below shows the isocost lines facing a firm producing golf tees. FIGURE 8-5
-Refer to Figure 8-5.This firm can be a "cost minimizer" by producing on isocost line
A)1 only.
B)2 only.
C)3 only.
D)4 only.
E)Not able to determine from the information provided.

Question

The figure below shows the isocost lines facing a firm producing golf tees.  FIGURE 8-5
-Refer to Figure 8-5.This firm can be a "cost minimizer" by producing on isocost line
A)1 only. 
B)2 only. 
C)3 only. 
D)4 only. 
E)Not able to determine from the information provided.

Quizplus · Accepted Answer

Without the figure or additional information about the isocost lines and the firm's production function, it is not possible to determine which isocost line allows the firm to minimize costs.

The Figure Below Shows the Isocost Lines Facing a Firm