1.

What is Iso – cost line?

Answer»
  1. The iso – cost line is an important component in analysing producer’s behaviour.
  2. The iso – cost line illustrates all the possible combinations of two factors that can be used at given costs and for a given producer’s budget.
  3. Simply stated, an iso – cost line represents different combinations of inputs which shows the same amount of cost.
  4. The iso – cost line gives information on factor prices and financial resources of the firm.
  5. It is otherwise called as “iso – price line” or “iso – income line” or “iso – expenditure line” or “total outlay curve”.


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