For given input prices,isocosts farther from the origin are associated with:
A) lower costs.
B) the same costs.
C) higher costs.
D) initially lower, then higher costs.

Question

Quizplus · Accepted Answer

Isocosts represent all combinations of capital and labor that result in the same total cost. Further from the origin on the graph indicates more resources are being used, resulting in higher costs. Therefore, isocosts farther from the origin are associated with higher costs.

For Given Input Prices,isocosts Farther from the Origin Are Associated