If the Isoquants Are Straight Lines or L-Shaped,then a Cost-Minimizing

question 95

Multiple Choice

If the isoquants are straight lines or L-shaped,then a cost-minimizing firm will

• A) not be able to minimize costs.
• B) find the lowest isocost line touching the relevant isoquant.
• C) find the highest isocost line touching the relevant isoquant.
• D) choose not to produce any output.

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Definitions:

Assembly Line

A production process that breaks down a complex job into a series of smaller tasks, which are completed in a sequential manner.

Non-Manufacturing Costs

Expenses not directly related to the production of goods, such as administrative, marketing, and sales costs.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, salaries of indirect labor, and equipment depreciation.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of non-direct labor.