On an Isoquant/isocost Graph, the Least Cost Input Combination of Producing

question 295

Multiple Choice

On an isoquant/isocost graph, the least cost input combination of producing a given output is

• A) any point on the isoquant curve.
• B) any point on the isocost curve.
• C) given by the tangency between the isoquant curve and the isocost line.
• D) one of the intercept values on the graph.

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Definitions:

Linear Relationship

A type of relationship between two variables where the change in one variable is consistently associated with a change in the other variable in a manner that can be depicted with a straight line.

Coefficient Of Correlation

The coefficient of correlation is a statistical measure that calculates the strength and direction of a linear relationship between two variables.

Coefficient Of Determination

A statistic that measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Linear Regression Model

A statistical method for modelling the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.