Figure 7.17
-Refer to Figure 7.17.A curve that connects points a, d and e is called
A)an input-output curve.
B)a total cost line.
C)an expansion path.
D)an indifference line.

Question

Figure 7.17 
-Refer to Figure 7.17.A curve that connects points a, d and e is called
A)an input-output curve. 
B)a total cost line. 
C)an expansion path. 
D)an indifference line.

Quizplus · Accepted Answer

The curve that connects points a, d and e is called an expansion path, which shows the combinations of inputs that a firm would choose at different levels of output, assuming input prices remain constant. It indicates the minimum cost combination of inputs needed to produce a certain level of output.

Figure 7.17 -Refer to Figure 7.17.A Curve That Connects Points A, D