In Order to Solve Graphically for an Interior Cost Minimum

question 84

Multiple Choice

In order to solve graphically for an interior cost minimum of the firm, subject to the constraint of producing a particular target level of output, we:

• A)shift in the isocost line as much as possible.
• B)shift out the isoquant as much as possible.
• C)shift the isocost line left as much as possible subject to the constraint that it touches the target isoquant at least once.
• D)shift the isoquant left as much as possible subject to the constraint that it touches the target isocost at least once.

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Definitions:

Negative Exponent

Indicates that the base of the exponent should be reciprocated and the exponent made positive.

Arithmetic Sequence

A series where each number following the initial one is derived by adding a fixed value to the term before it.

Nth Term

The general term of a sequence, represented as a function of its position, n, in the sequence.

Formula

A concise way of expressing information symbolically, such as a mathematical or chemical formula.