The Point of Tangency Between an Isocost Line and an Isoquant

question 56

Multiple Choice

The point of tangency between an isocost line and an isoquant is necessarily

• A) the profit-maximizing combination of inputs that should be hired to produce that output level.
• B) the least costly combination of inputs that can be hired to produce the output level.
• C) both the profit-maximizing and least costly combination of inputs that can be used to produce the output level.
• D) the minimum amount of output that can be attained for that level of expenditure.

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Definitions:

Revolutionary War

The conflict between Great Britain and its Thirteen Colonies in North America from 1775 to 1783, which led to the colonies gaining independence and becoming the United States.

Appropriations Bills

Legislation passed by a legislative body to allocate government funds to specific federal government departments, agencies, and programs.

Jay Treaty

A 1795 agreement between the United States and Great Britain that aimed to resolve issues remaining after the American Revolutionary War and facilitated ten years of peaceful trade between the two nations.

Legislative Business

The range of activities conducted in a legislative body including the introduction, debate, and passing of laws.