Exhibit 7-21
-Connecting points g, h, and i in Exhibit 7-21 yields the firm's
A) marginal rate of substitution
B) isocost line
C) marginal cost curve
D) expansion path
E) total revenue line

Question

Exhibit 7-21 
-Connecting points g, h, and i in Exhibit 7-21 yields the firm's
A) marginal rate of substitution 
B) isocost line 
C) marginal cost curve 
D) expansion path 
E) total revenue line

Quizplus · Accepted Answer

Connecting points g, h, and i on an isoquant map gives us the expansion path, which shows the optimal combination of inputs (in this case, labor and output) as the firm expands its output level. Thus, the correct choice is D, the expansion path.

Exhibit 7-21 -Connecting Points G, H, and I in Exhibit 7-21 Yields