If an isocost line cuts through the isoquant line, a cost-minimising firm will
A) choose the factor input combination at the intersection on the higher point of the isoquant.
B) choose the factor input combination at the intersection on the lower point of the isoquant. Use the input bundle associated with the intersection on the lower point of the isoquant.
C) choose any combination of the factors between where the isocost line cuts through the isoquant line.
D) use a lower isocost line to select the combination of inputs.
Correct Answer:
Verified
Q26: In the short run,
A)all inputs are fixed.
B)all
Q39: An isocost line shows
A) the different combination
Q40: Q41: In theory, a cost-minimising firm will choose Q43: Explain how a firm may increase the Q45: Find the least cost output assuming that Q46: A firm's R200 per hour isocost line Q46: When are the factor inputs, labour and Q47: Why might the least-cost input combination change? Q48: The least-cost combination occurs where:![]()
A)
A) the isocost
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