The Following Figure Shows Two Isocost Lines $I S _ { 1 }$

question 24

Multiple Choice

The following figure shows two isocost lines ( $I S _ { 1 }$ and $I S _ { 2 }$ ) and two isoquants for the production of 200 and 350 tons of corn.The axes show the quantities of the two types of fertilizers used in corn production.

-Refer to Figure .An increase in the slope of an isocost implies:

• A)the firm is using more of the input measured on the X-axis.
• B)the total cost incurred by the firm has declined.
• C)the input measured on the X-axis has become costlier.
• D)the price of both inputs has declined.

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Definitions:

Break Even

The point at which total revenue equals total costs, making a business neither profitable nor unprofitable at this juncture.

Cost Curves

Graphical representations of the costs associated with producing different levels of output, aiding in economic and business decision-making.

Profit Or Loss

The financial result of a business's operations, calculated as total revenues minus total expenses.

Cost Curves

Graphical representations that show how the cost of producing a good or service varies with the quantity produced.