Answer:
D. All the above are correct
Step-by-step explanation:
An isocost line will be shifted further away from the origin if the total cost increases, if the price of both inputs increases or there is an advance in technology.
An isocost line can be defined as the graphical representation of various combinations of two inputs factors (labor,L and capital, K) which the firm can afford or purchase with a given amount of money.
An isocost line can be expressed mathematically as:
C = w L + r K
Where,
C = cost of production
w = price of labor or wages
L = units of labor
r = price of capital or interest rate
K =units of capital
Isocost is used to determine what combination of factor inputs the firm will choose for production process.
