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ujesssss ujesssss
wrote...
Posts: 373
A week ago

Question 1.

Suppose the price of capital and labor remain constant. As a firm's expenditures for capital and labor increase, its isocost line



shifts in parallel to the original isocost line.



shifts out parallel to the original isocost line.



rotates outward on the X-intercept.



rotates outward on the Y-intercept.



Question 2.

On an isoquant/isocost graph, the least cost input combination of producing a given output is



given by the tangency between the isoquant curve and the isocost line.



any point on the isocost line.



any point on the isoquant curve.



one of the intercept values on the graph.

Textbook 

InMicro


Edition: 1st
Authors:
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Answer verified by a subject expert
nick1116nick1116
wrote...
Posts: 332
A week ago
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Answer 1

shifts out parallel to the original isocost line.



Answer 2

given by the tangency between the isoquant curve and the isocost line.

1

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