An isocost line shows
A)combinations of two inputs that result in the same total cost for a firm.
B)combinations of two inputs that result in the same total output for a firm.
C)combinations of the two inputs that result in the same profit for a firm.
D)the different levels of total cost that result from various combinations of two inputs.

Question

Quizplus · Accepted Answer

An isocost line represents all the possible combinations of two inputs that result in the same total cost for a firm. It shows the alternative input combinations that a firm can choose from in order to produce a particular level of output at the lowest possible cost.

An Isocost Line Shows