Figure 11-18

-Refer to Figure 11-18.Starting from point D, a movement along isoquant₂ to point F
A)increases the total cost of production with no change in output.
B)increases output but not the total cost of production.
C)increases the total cost of production and decreases output.
D)increases both the total cost of production and output.

Question

Figure 11-18
 
-Refer to Figure 11-18.Starting from point D, a movement along isoquant₂ to point F
A)increases the total cost of production with no change in output. 
B)increases output but not the total cost of production. 
C)increases the total cost of production and decreases output. 
D)increases both the total cost of production and output.

Quizplus · Accepted Answer

Isoquant₂ represents a higher level of output than isoquant₁, so moving from point D to point F increases output. However, since the movement is along the same isoquant, the total cost of production remains the same.

Figure 11-18 -Refer to Figure 11-18.Starting from Point D, a Movement Along