[amp_mcq option1=”Convex” option2=”Concave” option3=”Tangent” option4=”Perpendicular” correct=”option3″]<\/p>\n
The correct answer is: C. Tangent<\/strong><\/p>\n An isoquant is a curve that shows all the combinations of inputs that produce the same level of output. An iso-cost line is a line that shows all the combinations of inputs that can be purchased with a given budget.<\/p>\n At an equilibrium point, the firm will be using the least-cost combination of inputs to produce the desired level of output. This means that the isoquant and the iso-cost line will be tangent at the equilibrium point.<\/p>\n A convex isoquant means that the firm is willing to pay more for an additional unit of input when it already has a lot of that input. A concave isoquant means that the firm is willing to pay less for an additional unit of input when it already has a lot of that input. A perpendicular isoquant is not possible, because the isoquant and the iso-cost line must intersect at some point.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Convex” option2=”Concave” option3=”Tangent” option4=”Perpendicular” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-50344","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n