If an Isocost Line Cuts Through the Isoquant Line, a Cost-Minimising

question 47

Multiple Choice

If an isocost line cuts through the isoquant line, a cost-minimising firm will

• A) choose the factor input combination at the intersection on the higher point of the isoquant.
• B) choose the factor input combination at the intersection on the lower point of the isoquant. Use the input bundle associated with the intersection on the lower point of the isoquant.
• C) choose any combination of the factors between where the isocost line cuts through the isoquant line.
• D) use a lower isocost line to select the combination of inputs.

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Definitions:

Difference-In-Difference

A statistical technique used to measure the effect of a treatment or intervention by comparing the changes in outcomes over time between a treatment group and a control group.

Free Warranty

A promise or guarantee provided at no extra charge that covers repair or replacement of a product within a specified period.

Type I Errors

The incorrect rejection of a true null hypothesis, also known as a "false positive."

Difference-In-Difference

Difference-in-difference is a statistical technique used in econometrics and quantitative research to measure the effect of a treatment or intervention by comparing the changes in outcomes over time between a group that's exposed to the treatment and a group that's not.