An isocost line Question 7 options: 1) represents the combinations of w and K that cost the firm the same amount of money. 2) represents the combinations of K and L that cost the firm the same amount of money. 3) has a convex shape. 4) represents the combinations of r and w that cost the firm the same amount of money.

represents the combinations of K and L that cost the firm the same amount of money.

Step-by-step explanation:

Isocost is a graph representing factor inputs ( labour, capital ) ; which costs firm the same level of total production expenditure.

The curve is analogous to consumer's budget line - product combinations costing same to consumers. So, it is likely a straight line downward sloping curve also. Such because : factors are inversely related, given same total cost; and the slope is constant = price ratios of the two factor inputs.

option a.

step-by-step explanation:

if you look closely at the graph, we can notice that the function is not defined at two different points.

if you look at functions b and c, you will notice that both functions are not defined at just one point. the function b is not defined at x= -5/2 and function c is not defined at x=-5. both options are discarded, given that our function should not be defined at two fiferent points.

now, if you look closely at the graph you will notice that the function sketched is not defined at x=5 and x=-2.

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step-by-step explanation: