Author Question: What is an isocost line? Write the equation used for an isocost line. What will be an ideal ... (Read 171 times)

corkyiscool3328 · **on:** Jun 29, 2018

What is an isocost line? Write the equation used for an isocost line.

What will be an ideal response?

Question 2

If inflation in Mexico is lower than it is in the United States,

A) the purchasing power of the dollar in buying American goods will rise relative to the peso.
B) the value of the peso will rise in the long run.
C) the value of the dollar will rise in the long run.
D) the purchasing power of the peso in buying Mexican goods will fall relative to the dollar.

jaaaaaaa · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

An isocost line is a line that shows all of the combinations of capital and labor that are available for a given cost. The equation used for an isocost line is
(PK K) + (PL L)
= TC.

Answer to Question 2

B