When a firm moves to a lower isoquant,it is always true that
A) the utility of the owner decreases.
B) the utility of the workers decreases.
C) the firm produces less output.
D) the firm produces more output.
E) the firm uses less capital.

Question

Quizplus · Accepted Answer

Moving to a lower isoquant means the firm can produce the same level of output with less inputs. Therefore, the firm produces less output. The other choices are not necessarily true when moving to a lower isoquant.

When a Firm Moves to a Lower Isoquant,it Is Always