A graph showing all the combinations of capital and labor available for a given total cost is the
A) isocost line.
B) isoquant.
C) budget constraint.
D) expenditure set.

Question

Quizplus · Accepted Answer

The isocost line represents all the combinations of capital and labor that can be purchased for a given total cost, similar to a budget constraint in consumer theory but applied to production inputs.

A Graph Showing All the Combinations of Capital and Labor