The set of tangencies between isoquants and isocosts is the firm's
A) production function.
B) returns to scale.
C) output maximization curve.
D) expansion path.

Question

Quizplus · Accepted Answer

The set of tangencies between isoquants and isocosts represents various combinations of inputs that provide the same level of output at a constant cost. This set of tangencies is known as the expansion path, which shows how the firm's input combination changes as output level increases. Therefore, option D, expansion path, is the correct answer.

The Set of Tangencies Between Isoquants and Isocosts Is the Firm's