Figure 7.17 -Refer to Figure 7.17.Starting from point d, a movement along isoquant₁ 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

Quizplus · Accepted Answer

Moving along an isoquant implies that the level of output remains constant, but changing the combination of inputs used. If moving from point d to f involves moving to a higher isocost line, it means that more expensive combinations of inputs are being used without increasing output, thus increasing the total cost of production with no change in output.

Figure 7.17 -Refer to Figure 7.17.Starting from Point D, a Movement Along