alleryStart learning →The cost-minimising input mix is at tangency of isoquant and which line?
ABudget line
BIsocost line
CDemand line
DPrice line
Answer & Solution
Correct answer: B. Isocost line
The firm minimises cost for given output where the isoquant just touches an isocost line.
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Related questions
With fixed unit input costs, isocost curves have which shape?Widening gaps between isoquants of equal output steps indicate what?Under declining MRTS, an isoquant is what relative to the origin?A line joining tangency points of isoquants and isocosts is called what?At least cost, the ratio of marginal products equals which ratio?With perfect complements, inputs can be combined efficiently only how?If two inputs are perfect substitutes, how does X replace Y?An input mix above and to the right of an isoquant gives what output?