Figure 11-18

-Refer to Figure 11-18.Starting from point E, a movement along the isocost to point F
A)decreases the total cost of production but not output.
B)increases the total cost of production and decreases output.
C)decreases both the total cost of production and output.
D)decreases output but not the total cost of production.

Question

Figure 11-18
 
-Refer to Figure 11-18.Starting from point E, a movement along the isocost to point F
A)decreases the total cost of production but not output. 
B)increases the total cost of production and decreases output. 
C)decreases both the total cost of production and output. 
D)decreases output but not the total cost of production.

Quizplus · Accepted Answer

Moving along an isocost line means changing the combination of inputs without changing the total cost, but it can lead to a change in output.

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