FIGURE 8-4
-Refer to Figure 8-4.A firm that is producing an output of 1000 units will minimize its costs at point
A)A.
B)B.
C)C.
D)D.
E)halfway between B and D.

Question

FIGURE 8-4
-Refer to Figure 8-4.A firm that is producing an output of 1000 units will minimize its costs at point
A)A. 
B)B. 
C)C. 
D)D. 
E)halfway between B and D.

Quizplus · Accepted Answer

The firm will minimize its costs at point B because it is the point where the firm's isoquant (representing 1000 units of output) is tangent to the lowest possible isocost line, indicating the least-cost combination of inputs for producing that level of output.

FIGURE 8-4 -Refer to Figure 8-4.A Firm That Is Producing an Output