Figure 11-18
-Refer to Figure 11-18. Starting from point e, a movement along the isocost to point f
A) decreases the total cost of production but not output.
B) increases the total cost of production and decreases output.
C) decreases both the total cost of production and output.
D) decreases output but not the total cost of production.

Question

Figure 11-18 
-Refer to Figure 11-18. Starting from point e, a movement along the isocost to point f
A) decreases the total cost of production but not output. 
B) increases the total cost of production and decreases output. 
C) decreases both the total cost of production and output. 
D) decreases output but not the total cost of production.

Quizplus · Accepted Answer

A movement along the isocost line indicates a change in the combination of inputs used without changing the total cost of production. However, moving from point e to point f suggests a change in the input mix that results in decreased output.

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