An expansion path shows
A)the level of sales necessary for a firm if it wants to expand.
B)the level of long-run average cost at different scales of operation.
C)the least-cost combination of inputs for each level of output.
D)the returns to scale at each level of output.

Question

Quizplus · Accepted Answer

An expansion path illustrates the least-cost combination of inputs that a firm can use to produce different levels of output, given the prices of inputs.

An Expansion Path Shows