Figure 11-9
-Refer to Figure 11-9.Starting from point e,a movement along the isocost to point f

Question

Figure 11-9 
-Refer to Figure 11-9.Starting from point e,a movement along the isocost to point f

Quizplus · Accepted Answer

Moving from point e to f along the isocost line decreases the amount of capital used, leading to a decrease in output. However, the isocost line represents the total cost of production and since it remains constant, the total cost of production does not change. Therefore, the correct answer is D, as output decreases but the total cost of production remains the same.

Figure 11-9 -Refer to Figure 11-9.Starting from Point E,a Movement Along the Movement