Figure 11-9
-Refer to Figure 11-9.A curve that connects points a,d and e is called

Question

Figure 11-9 
-Refer to Figure 11-9.A curve that connects points a,d and e is called

Quizplus · Accepted Answer

An expansion path shows the combinations of two inputs that will produce the same level of output while minimizing cost. In the given figure, the curve that connects points a, d and e represents different combinations of inputs (capital and labor) that produce the same level of output while minimizing cost. Therefore, the correct choice is C - an expansion path. Choice A (an input-output curve) is incorrect as it refers to a curve that shows the relationship between input and output; choice B (a total cost line) is incorrect as it refers to a line that shows the total cost of producing a given level of output at different levels of input; and choice D (an indifference line) is incorrect as it refers to a line that shows the different combinations of two goods that yield the same level of satisfaction to the consumer.

Figure 11-9 -Refer to Figure 11-9.A Curve That Connects Points A,d and Points