An isocost line represents:
A)all the combinations of inputs to a production process that result in the same total costs of production.
B)all the combinations of inputs that result in the same amount of output.
C)all of the combinations of two inputs for which the amount of money spent on each of the inputs is equal.
D)all of the levels of output that result in the same total cost.

Question

Quizplus · Accepted Answer

An isocost line represents all the combinations of inputs to a production process that result in the same total costs of production. This means that different combinations of inputs can be used to achieve the same total cost, and the isocost line shows all possible combinations of those inputs. It is important to note that the slope of the isocost line represents the relative prices of the two inputs.

An Isocost Line Represents