When the Isocost Line Is Tangent to the Isoquant,then

question 48

Multiple Choice

When the isocost line is tangent to the isoquant,then

• A) MRTS = -w/r.
• B) the firm is producing that level of output at minimum cost.
• C) the last dollar spent on capital yields as much extra output as the last dollar spent on labor.
• D) All of the above.

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Definitions:

Membership

The state of being a member within an organization or group.

Grievance Process

A procedure for settling disputes arising under a collective agreement.

Check-off Provision

A clause in a labor agreement that allows an employer to automatically deduct union dues from employees' wages.

Strike

A work stoppage caused by the mass refusal of employees to work, usually to protest against employment conditions.