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Angelina_Jolie [31]
3 years ago
11

An isocost line Question 7 options: 1) represents the combinations of w and K that cost the firm the same amount of money. 2) re

presents the combinations of K and L that cost the firm the same amount of money. 3) has a convex shape. 4) represents the combinations of r and w that cost the firm the same amount of money.
Mathematics
1 answer:
Travka [436]3 years ago
3 0

Answer:

represents the combinations of K and L that cost the firm the same amount of money.

Step-by-step explanation:

Isocost is a graph representing factor inputs ( labour, capital ) ; which costs firm the same level of total production expenditure.

The curve is analogous to consumer's budget line - product combinations costing same to consumers. So, it is likely a straight line downward sloping curve also. Such because : factors are inversely related, given same total cost; and the slope is constant = price ratios of the two factor inputs.

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