When a firm moves to a higher isoquant,
A) the utility level of the firm's managers increases.
B) the firm now produces more output.
C) the firm now produces less output.
D) the firm produces the same output, but at a higher price.

Question

Quizplus · Accepted Answer

Moving to a higher isoquant means the firm is able to produce more output, while holding constant the level of inputs being used. The firm could achieve this by improving technology, adding more resources, or improving managerial efficiency.

When a Firm Moves to a Higher Isoquant