Movement from one point to another along an isocost line implies a change in
A) expenditure.
B) output levels, holding factor combinations constant.
C) factor combinations, holding expenditure constant.
D) factor prices.
E) the level of output, independent of what happens to factor combinations.

Question

Quizplus · Accepted Answer

Movement along an isocost line indicates a change in the combination of factors (inputs) used, while keeping the total expenditure constant.

Movement from One Point to Another Along an Isocost Line