Figure 11-18
-Refer to Figure 11-18. A curve that connects points a, d and e is called
A) an input-output curve.
B) a total cost line.
C) an expansion path.
D) an indifference line.

Question

Figure 11-18 
-Refer to Figure 11-18. A curve that connects points a, d and e is called
A) an input-output curve. 
B) a total cost line. 
C) an expansion path. 
D) an indifference line.

Quizplus · Accepted Answer

The curve that connects points a, d, and e is an expansion path, which shows the optimal combination of inputs to produce different output levels while keeping the cost constant. Choice A is incorrect because an input-output curve shows how changes in input levels affect output levels. Choice B is incorrect because a total cost line shows the total cost of production at different levels of output. Choice D is incorrect because indifference lines show combinations of two goods that provide the same level of utility to a consumer.

Figure 11-18 -Refer to Figure 11-18. a Curve That Connects Points A