Ask Question
BusinessBusiness
24 June, 03:24

An isocost line is a curve that shows all combinations of labor and capital that are available for a given total cost

+2
Answers (1)
  1. 24 June, 04:13
    0
    The above statement is TRUE

    Explanation:

    Isocost Line shows input/factor combinations (here - labor & capital) which are of same Total Cost / budget to the producer, given factors price.

    It is analogous to Consumer's Budget Line Constraint (representing product combinations satisfying their income budget).

    It is an important component of Producer's Equilibrium : Producer is at equilibrium where Isocost is tangent to Isoquant (representing input / factor combinations yielding same level of production quantity - analogous to consumer's indifference curve showing production combinations offering same consumer satisfaction).

    Tangency of Iscost line to Isoquant curve gives Producer Equilibrium.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An isocost line is a curve that shows all combinations of labor and capital that are available for a given total cost ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If i activate a new debit card does it cancel the old one
Answers (1)
Leased a delivery truck to YA right after purchasing it for $40,000 on December 31, 2021. Its retail value is $45,114.
Answers (1)
Which of the following is true about an income statement? a. The income statement accurately represents all cash inflows and outflows for a given period of time. b. The income statement is reported on an accrual basis. c.
Answers (1)
Phil's filling station gas station operates on a patch on the highway in a patch where there were no gas stations close by. It enjoyed high profits. After a while, Glen's gas another gas station opened up close by.
Answers (1)
A single branch of Simpson Shoes has been operating since 1917. A new marketing team member suggested they look into Local Inventory ads. The owner, Bert Simpson, is concerned about where potential customers might see the ad.
Answers (2)
New Questions in Business
In year 1, the Consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was 125 and the average nominal level of income was $32,000. What happened to real income from year 1 to year 2?
Answers (1)
Coral Think Inc. is a new company in the publishing industry. It has raised sufficient capital from multiple sources. It is planning to use its capital to purchase certain assets.
Answers (1)
During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000.
Answers (1)
The partnership agreement of E Smith and N Patel state that Smith receives 30% and Patel 70% of partnership income and losses. The partnership net income is $100,000 and is allocated to the partners when the income summary account is closed.
Answers (1)
What causes changes from one phase of the business cycle to another?
Answers (1)
Home » Business » An isocost line is a curve that shows all combinations of labor and capital that are available for a given total cost
Sign Up Forgot Password?