The set of all baskets of inputs that can be employed at a given cost defines a(n)
A) isoquant curve.
B) isocost curve.
C) expansion path.
D) production function exhibiting constant returns to scale.

Question

Quizplus · Accepted Answer

The set of all baskets of inputs that can be employed at a given cost is known as an isocost curve. It represents all the combinations of factors of production that can be purchased for a given cost. The slope of an isocost curve represents the relative prices of factors of production.

The Set of All Baskets of Inputs That Can Be