A Firm's Least- Cost Position for Producing a Given Output

question 46

Multiple Choice

A firm's least- cost position for producing a given output level occurs at that point where

• A)the isocost and isoquant intersect the vertical axis.
• B)the isocost line and the isoquant are tangent to each other.
• C)the isocost line intersects the highest isoquant.
• D)the isocost and isoquant intersect the horizontal axis.
• E)the isoquant is closest to the origin.

---

Definitions:

Taxable Income

The portion of an individual's or entity's income used to determine how much tax is owed to the government in a specific period.

Progressive

A tax system where the tax rate increases as the taxable amount increases, often aimed at achieving a more equitable distribution of income.

Proportional

A relationship where two quantities increase or decrease at the same rate, maintaining a constant ratio.

Regressive

Refers to a tax system where the tax rate decreases as the taxable amount increases, often placing a higher burden on lower-income earners.