Isocost lines
A)are dependent upon the technical efficiency of the production function.
B)are dependent upon the quantity of goods a firm wants to produce.
C)are dependent upon the costs of a firm's inputs.
D)are the same as budget lines.

Question

Quizplus · Accepted Answer

Isocost lines represent all the combinations of inputs that a firm can purchase with a given level of cost. Therefore, they are dependent upon the costs of a firm's inputs. The other options are incorrect as isocost lines do not relate to technical efficiency or the quantity of goods a firm wants to produce. Isocost lines are similar to budget lines in the sense that they both represent combinations of goods that can be purchased with a given level of expenditure, but they are not the same thing.

Isocost Lines