The set of tangencies between isoquants and isocosts is the firm's: a. production function. b. expansion...

The set of tangencies between isoquants and isocosts is the firm's:

a. production function.

b. expansion path.

c. output maximization curve.

d. returns to scale

Expert Solution

b. Expansion path

Expansion path gives the optimal combinations of two inputs (such as labor and capital) that change with change in scale of production .

It shows what level of inputs will be hired optimally when firm changes its level of production.

Rahul Sunny answered 2 years ago

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