Lines that represent bundles of inputs that cost the same total amount are called:
A) total cost curves.
B) isocost curves.
C) cost curves.
D) isoquants.
E) isoprofit curves.

Question

Quizplus · Accepted Answer

Isocost curves represent different combinations of inputs that can be purchased for the same cost. This is useful for analyzing production decisions and identifying the most cost-effective input combination. Total cost curves, cost curves, and isoquants all focus on different aspects of production analysis, but do not specifically represent bundles of inputs that cost the same amount. Isoprofit curves focus on identifying the combinations of inputs and output levels that generate maximum profit, which is a different concept entirely.

Lines That Represent Bundles of Inputs That Cost the Same