A firm's ______ connects all the input combinations with the same price.
A) cost function
B) isoquant
C) budget constraint
D) isocost line

Question

Quizplus · Accepted Answer

The isocost line represents all the combinations of inputs that can be purchased for the same total cost, given the prices of the inputs. It is analogous to a budget constraint in consumer theory, but applied to the firm's production decisions.

A Firm's ______ Connects All the Input Combinations with the Same