Asked by
Carter Olesen
on Nov 04, 2024Verified
A firm's isocost line shifts parallel inward from the original isocost line as its
A) total cost for capital and labor increases.
B) total cost for capital and labor decreases.
C) total cost for capital increases and its total cost for labor decreases.
D) total cost for capital decreases and its total cost for labor increases.
Isocost Line
A graph line representing all combinations of inputs that have the same total cost.
Total Cost
The complete cost of production, including both fixed and variable costs, for a set level of output.
Capital
Those goods produced by the economic system that are used as inputs to produce other goods and services in the future.
- Understand the concept of isocost lines and how shifts in isocost lines reflect changes in a firm's cost structure.
Verified Answer
BF
Learning Objectives
- Understand the concept of isocost lines and how shifts in isocost lines reflect changes in a firm's cost structure.