Isocost lines are downward sloping straight lines, reflecting
A) increasing factor prices.
B) that each factor price has a negative value.
C) constant factor prices.
D) a change in relative factor prices.
E) decreasing factor prices.

Question

Quizplus · Accepted Answer

Isocost lines assume constant factor prices, meaning that the cost of each input does not change as the level of inputs change.

Isocost Lines Are Downward Sloping Straight Lines, Reflecting