Figure 7.16
-Refer to Figure 7.16.Assume that production isoquants are convex.Total cost and output produced must increase for each of the following movements except one.Which movement is the exception?
A)Point a to point b
B)Point a to point c
C)Point b to point c
D)Point b to point d

Question

Figure 7.16 
-Refer to Figure 7.16.Assume that production isoquants are convex.Total cost and output produced must increase for each of the following movements except one.Which movement is the exception?
A)Point a to point b 
B)Point a to point c 
C)Point b to point c 
D)Point b to point d

Quizplus · Accepted Answer

Moving from point b to point c does not necessarily increase total cost or output because both points can be on the same isoquant, indicating the same level of output, and the movement could represent a substitution of one input for another without increasing total costs.

Figure 7.16 -Refer to Figure 7.16.Assume That Production Isoquants Are Convex.Total Cost