Figure 7.12
-Refer to Figure 7.12.The movement from isoquant T to isoquant U depicts
A)a change in preferences with regards to input usage.
B)an increase in the cost of production.
C)an increase in output.
D)an increase in labour usage holding capital and output constant.

Question

Figure 7.12 
-Refer to Figure 7.12.The movement from isoquant T to isoquant U depicts
A)a change in preferences with regards to input usage. 
B)an increase in the cost of production. 
C)an increase in output. 
D)an increase in labour usage holding capital and output constant.

Quizplus · Accepted Answer

Moving from one isoquant to another, such as from T to U, indicates a change in the level of output produced, assuming the isoquants represent different quantities of output.

Figure 7.12 -Refer to Figure 7.12.The Movement from Isoquant T to Isoquant