Map Sapling Learning macmillan leaing The graph below contains several isocost l
ID: 1103830 • Letter: M
Question
Map Sapling Learning macmillan leaing The graph below contains several isocost lines for Measure Once Lumber Company. Each labeled point represents a combination of the two inputs it uses in production, capital and labor. Based on the isocost lines please answer the following questions 1. Which combination(s) of inputs represent(s) the highest total cost? Select all that apply 2. Suppose Measure Once Lumber Company wishes to reduce their costs to a level lower than occurs with Isocost 2. Which input combination(s) would result in a lower total cost? Select all that apply socost 2 Quantity of LaborExplanation / Answer
1. The correct answer is D. This is on the highest isocost line and has the highest total cost.
2. The correct answers are A and B. They both lie on the same isocost line lower than isocost 2.