A line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices is called the
A) input demand curve.
B) total product curve.
C) expansion path.
D) isocost line.

Question

Quizplus · Accepted Answer

The expansion path is a line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices, showing the cost-minimizing combination of inputs for different levels of output.

A Line That Connects All Points Where the Marginal Rate