The expansion path graphs:
A)the combinations of capital and labor that minimize total cost for various levels of output.
B)the combinations of capital and labor that have the same total cost for various levels of output.
C)the combinations of capital and labor that have the same level of output.
D)how the firm can expand output while holding total cost constant.

Question

Quizplus · Accepted Answer

The expansion path shows the combinations of capital and labor that minimize total cost for different levels of output, illustrating how a firm should adjust its input mix to produce efficiently as it scales production.

The Expansion Path Graphs