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) -- not determinable from the information provided.
B) 4 only.
C) 1 only.
D) 2 only.
E) 3 only.

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) -- not determinable from the information provided. 
B) 4 only. 
C) 1 only. 
D) 2 only. 
E) 3 only.

Quizplus · Accepted Answer

The information provided does not specify the cost structure or the production function of the firm, so it is not possible to determine which isocost line would allow the firm to minimize costs.

The Figure Below Shows the Isocost Lines Facing a Firm