For given input prices,isocosts closer to 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 closer to the origin represent lower costs because they require fewer resources to produce a certain output level. As we move away from the origin, more resources are required and costs increase accordingly.

For Given Input Prices,isocosts Closer to the Origin Are Associated