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

[corkyiscool3328]

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]

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

[corkyiscool3328]

YES! Correct, THANKS for helping me on my review

[Joy Chen]

Excellent