Asked by Alina Avdeyev on May 16, 2024
Verified
The least costly way to produce any given level of output is indicated by
A) the point of intersection between the isoquant corresponding to that level of output and the Y-axis.
B) the point of intersection between the isoquant corresponding to that level of output and the X-axis.
C) the point of tangency between an isocost line and the isoquant corresponding to that level of output.
D) the isocost line corresponding to that level of output.
Isoquant
A curve that shows all the combinations of inputs that produce the same level of output, used in the study of production theory.
Isocost Line
A graph representing all combinations of a firm's inputs that result in the same total cost.
Least Costly
A term referring to an option that incurs the lowest expenses in comparison to alternatives.
- Comprehend the correlation between isocost lines and isoquants for production optimization.
Verified Answer
FS
Fernando SantosMay 17, 2024
Final Answer :
C
Explanation :
The least costly way to produce any given level of output is indicated by the point of tangency between an isocost line and the isoquant corresponding to that level of output. This point represents the combination of inputs that minimizes cost for a given level of output.
Learning Objectives
- Comprehend the correlation between isocost lines and isoquants for production optimization.