At each point of tangency for isoquants and isocost lines, the slope of the isoquant must be ________ the slope of the isocost line.
A) greater than
B) less than
C) equal to
D) the reciprocal of

Question

Quizplus · Accepted Answer

At each point of tangency between isoquants and isocost lines, the slope of the isoquant must be equal to the slope of the isocost line, indicating that the firm is producing at the lowest possible cost for a given level of output.

At Each Point of Tangency for Isoquants and Isocost Lines