Question

A graph that shows all of the combinations of capital and labor that can be used...

A graph that shows all of the combinations of capital and labor that can be used to produce a given level output is which of the following?

a. A budget line b. An indifference curve
c. An isoquant d. An isocost line

The least-cost method of production is shown at the point of tangency between ________ and the ________ isoquant on an isoquant diagram.

a. indifference curve; highest b. budget line; highest
c. budget line; lowest d. marginal cost curve; lowest

As the price of the input decreases on the horizontal axis of an isoquant graph, the budget line will pivot in which of the following ways?

a. Inward from the horizontal axis b. Inward from the vertical axis
c. Outward from the vertical axis d. Outward from the horizontal axis

___________ is a line on an isoquant diagram that shows the least-cost production points for various levels of output.

a. A minimum marginal cost line b. A minimum efficient scale line
c. An isoquant d. An expansion path
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