A graph showing all the combinations capital and labor available for a given total cost is the ?
Correct answer: B. isocost line.
- A. expenditure set
- B. isocost line.
- C. budget constraint
- D. isoquant
Explanation
An isocost line shows combinations of capital and labour that can be purchased for the same total cost. An isoquant instead shows input combinations producing the same output.
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