Figure 11-18
-Refer to Figure 11-18. Starting from point d a movement along isoquant1 to point f
A) increases the total cost of production with no change in output.
B) increases output but not the total cost of production.
C) increases the total cost of production and decreases output.
D) increases both the total cost of production and output.

Question

Figure 11-18 
-Refer to Figure 11-18. Starting from point d a movement along isoquant1 to point f
A) increases the total cost of production with no change in output. 
B) increases output but not the total cost of production. 
C) increases the total cost of production and decreases output. 
D) increases both the total cost of production and output.

Quizplus · Accepted Answer

Moving along an isoquant represents different combinations of inputs that produce the same level of output. Therefore, moving from point d to point f along isoquant1 does not change the output. However, since the movement is from a lower isocost line (isocost2) to a higher isocost line (isocost3), the total cost of production increases.

Figure 11-18 -Refer to Figure 11-18. Starting from Point D a Movement